Samsung Electronics has reported stronger than expected mobile growth as its Galaxy S7 flagship saw quarterly sales soar.
The manufacturer’s financial results for Q1 2016 revealed that mobile sales grew from KRW 24.9tn (£14.9bn) to KRW 26.9tn (£16.1bn), up 8% year on year. This single digit percentage growth is in line with forecasts Samsung made at the beginning 2016.
Across the board, global sales decreased slightly from the previous quarter but were up year on year hitting KRW 49.7tn (£30bn). This was above the manufacturers initial guidance of KRW 49tn (£24.9bn), which it released in April of this year.
Galaxy S7 success
Samsung attributed its positive results to strong sales of its latest Galaxy S7 flagship, which was unveiled at Mobile World Congress alongside its new Gear VR headset. The South Korean manufacturer explained that enhanced practical features on the device led to consumer uptake, as well as its decision to introduce it to the market earlier than usual.
The brand’s quarterly results follow that of rival Apple, whose latest financials saw revenues drop for the first time in 13 years. Apple and Samsung have previously spoken out about tough market conditions and increasing competition, with both hinting that smartphone sales would slowdown in 2016.
Speaking about the upcoming year, Samsung previously warned: ‘As for the outlook for 2016, Samsung expects single-digit percentage growth in both the smartphone and tablet categories amid softening demand and intensifying competition.’
Samsung has said it expects smartphone demand to remain flat throughout the year, revealing plans to release a new flagship in the second half of 2016. This is part of the company’s plans to boost earnings through high-end growth and increasing the competiveness of its mobile line-up.