Samsung took a hit of billions of dollars due to the Galaxy Note 7 fiasco but the company’s year-end results for 2016 showed that it posted a higher operating profit and was just able to manage a recovery. There may be more than meets the eye here as analysts are of the view that the sales of Samsung’s flagship smartphones happen to be at their lowest levels yet.


Hana Financial Investment analysts believe that the details reveal Samsung’s flagship smartphone sales to be at their lowest levels. Their research shows that even though the company saw its overall profits go up, profits from the flagship Galaxy S and Galaxy Note series actually fell to 29 percent which is their lowest level.

This may be the first time that the flagship series have accounted for less than 30 percent of the company’s mobile profits. 2015 wasn’t a particularly good year for Samsung’s mobile business but profits from these series were reportedly at 40 percent. Flagships provided Samsung with record profits in the second quarter of 2013, accounting for 75 percent of the income due to the Galaxy S4’s performance.

So where has Samsung made up the difference? It appears that the heavy lifting is being done by the company’s mid-range and entry-level handsets that are part of its Galaxy A, C, and J series. One reason for the decline in profits from flagship smartphones can also be the slowdown in overall growth in the premium smartphone market.

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