Samsung's Q3 2015 Financials Show Some Promise
Another analyst, Charles King of Pund-IT, said Samsung's Q3 numbers are "reason for optimism, especially since poor results would have left their leadership facing the ugly prospect of explaining two years of faltering sales to nervous shareholders." "What's most interesting to me is that while Samsung has been myopically preoccupied with Apple, its positive results came from the depth and breadth of the company's overall portfolio," he said. King said that is ironic, "given Apple's ongoing (and so far largely unsuccessful) efforts to expand its business success beyond the iPhone. You could argue that Samsung's business holdings represent the kind of future Apple would like for itself but I wonder if Samsung's leadership understands that point." Maribel Lopez, principal analyst at Lopez Research, said she remains cautious about Samsung, despite the financial improvements in Q3.Samsung's second-quarter figures, which were reported back in July, came in with revenue falling 7 percent to $41 billion from $44.5 billion one year prior, and net profit dropping 8 percent to $4.9 billion from $5.3 billion in the second quarter of 2014. The company's mobile products revenue, which includes smartphones, fell 6.86 percent in the second quarter to $21.7 billion, down from $23.3 billion one year prior.
"I still see tough times ahead for Samsung," she wrote in an email reply. "Smartphone sales will be in the mid to low tier, offering lower revenue and margin. Component sales will help this but not replace this revenue. Also there's a potential for a global economic slowdown that will impact sales of other consumer goods. I'd be slashing any unnecessary expenses at this time to ensure a certain level of profitability."