Operating income at the semiconductor business probably fell about 25% to 2,55 trillion won in the June quarter on sales of 11,2 trillion won, according to the analyst survey. Full second-quarter data is set for release on July 28.
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Samsung’s efforts to revitalize its mobile business after it’d grown stagnant under the old regime appears to be paying off. “It’s not easy to pump up revenue when the global economy remains sluggish”.
The operating profit for the company during the second quarter will likely be its best in over two years and exceed the 8 trillion won mark that was last reached during the 2014 first quarter, when it posted 8.5 trillion won in operating profit.
More than half of the profit was generated in the mobile phone division. The forecast for operating profit is above expectations of analysts on Wall Street.
But analysts point out a hidden contributor to the impressive margin: reduced spending on marketing. “I think (Samsung’s) earnings may drop in the second-half”, he said.
Higher sales of the S7 Edge, with its wraparound screen, compared with the flat version, along with solid demand for cheaper models, helped earnings grow. Handset average selling prices could also see an increase, given that demand is likely skewed towards the more expensive S7 Edge device. It is the successor to the last years J2 and now according to VentureBeat the specifications of the Galaxy J2 (2016) have been revealed by “Someone who was briefed on the phone’s features and specifications”.
In terms of Samsung S7 sale volumes, analysts estimate 15 million units for the June quarter. It will release its full financial report for the second quarter later this month.
Samsung offers incentives in three different levels – A for 100 percent, B for 50 percent and C for 37.5 percent. So instead, they are based on the median of the earnings estimate range.
Among the devices that are confirmed to be in the list of Android Nougat updates, other than this year’s handsets, are the entire Samsung Galaxy S6 lineup as well as the Galaxy Note 5. Stay Tuned for much more from Samsung coming very soon!
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On the South Korean Stock Exchange, Samsung shares are now trading at 1,447,000 won, up 26,000 won or 1.83 percent on a volume of 161,523 shares.
