S6 to help Samsung beat forecasts

Samsung will most likely beat its forecast results in the first quarter of the year, thanks to improvement in chips and smartphones, analysts said on Monday.

As Korea Times reports, the analysts expect its operating profit to be higher than the market consensus of 5.2 trillion won (£3.1 billion)

Kyobo Securities believe it is Samsung’s next flagship smartphone, the Galaxy S6 that is to ‘blame’ for good results.

"Its operating profit is likely to grow eight per cent quarter-on-quarter on increased shipments of Galaxy S6 smartphones and the continued stronger demand for memory chips. A steady cut in profit losses in its logic chip division is another positive factor," Kyobo analyst Choi Do-yeon said in a report, Korea Times reports.

However, he also added that a stronger Korean currency could hurt Samsung’s business.

Meritz Securities expects Samsung’s operating profit to reach 5.6 trillion won (£3.3 billion)
"Our 1.75 million won (£1045) target on Samsung Electronics stocks hasn't been changed. Market forecast of Samsung Electronics' profit estimates was about 5.2 trillion won. However, this is too conservative. Samsung will do better and it will do much better in the second quarter," Park Yoo-ak at Meritz said.

Bernstein Research and Deutsche Bank expect S6 to boost the company's bottom line:
"For our thesis on Samsung Electronics, the S6 does not need to be a mega-success; even a further decline to 27 per cent market share in the premium segment would be more than enough," Mark Newman at Bernstein Research said.

The Samsung Galaxy S6 is the company’s attempt to regain former glory, after being pushed aside by the likes of Apple, Xiaomi and Micromax.