Samsung Electronics may have put a floor under its mobile margins, but skeptics say profits will undergo a new test with the latest flagship Galaxy smartphones, among the most costly the South Korean company has ever made.
Samsung's mobile devices division, which accounted for nearly 60 percent of total profit last year, boosted its operating margin to 10.6 percent in January-to-March, according to the company's final quarterly results released on Wednesday. That's the highest in three quarters. Analysts say Samsung's roll-out of new mid-range products with revamped designs in key markets such as India likely boosted sales.
Mobile earnings slumped 42 percent last year due to intense competition in both the top and low-end segments. Samsung was forced to dump unsold inventory at steep discounts, pushing quarterly margins into the single digits for the first time since 2010.
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