Samsung’s financial results were boosted considerably thanks to the Galaxy S7 smartphone’s incredible sales: operational profit in the second quarter will surpass 2015’s second quarter by 17.4 %.
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Samsung Electronics posted an earnings surprise in the second quarter, surpassing market expectations on strong sales of both flagship Galaxy smartphones and low-price models, a regulatory filing showed on Thursday.
In its earnings forecast Samsung placed its operating income at 8.1 trillion won compared to last year’s 6.9 trillion won.
In terms of Samsung S7 sale volumes, analysts estimate 15 million units for the June quarter. It racked up operating profit of 12.8 trillion won previous year, beating the 10.1 trillion won earned by the mobile unit. It was back in the 2014 first-quarter that Samsung had last reported more than 8 trillion won in operating income; with the figures that time having touched 8.5 trillion won. The second, it turns out, was not: Analysts said that opportunities at the high-end of the smartphone market were vanishing as key regions became saturated.
The combined shipment of the Galaxy S7 is estimated at some 16 million in the quarter. This percentage is the second-highest in the history of Samsung Electronics, second only to the 17.2% recorded in the third quarter of 2013.
Released in late March, the S7 received strong reviews and appeared to be popular with consumers.
This is in contrast to its American rival Apple, which in April reported its first quarterly revenue decline in 13 years and its first year-on-year drop in iPhone sales. Samsung did not give its net profit or breakdowns among its business divisions.
Samsung’s latest flagship smartphone duo was well received by reviewers and fans alike.
The company is the world’s largest maker of smartphones, televisions, memory chips and display panels.
Apple’s new iPhones are due later this year so it remains to be seen if Samsung’s mobile division, and thus the company’s overall finances, can continue in this positive vein amid increased competition.
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Samsung shares were up 1.83% in trading in South Korea on Thursday following the release of the company’s estimates for its second quarter sales and earnings.
