Samsung said that the reason it did so well was because of its strong sales of the Galaxy S7 and S7 Edge handsets.
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Those figures represent the company’s performance as a whole – including its display technology, electronics, and whatnot. But the Galaxy S7 was one of the main drivers that helped lift Samsung’s earnings.
In a press release, the company has announced that the IT & Mobile Communications Division improved earnings substantially thanks to increased sales of flagship products, like the Galaxy S7 and Galaxy S7 edge. Yet the expensive, high-end S7 Edge actually accounted for more than 50 percent of its smartphone sales, Samsung said.
In addition, Samsung estimated that the stronger Korean won against major currencies in the second quarter negatively impacted operating profits by approximately KRW0.3 trillion, which affected mainly its component business earnings.
International Data Corporation disclosed Thursday that smartphone volumes were relatively flat in the second quarter marking the second consecutive quarter without growth. The smartphone unit’s operating profit tumbled to 1.75 trillion won in the third quarter of 2014 after peaking at 6.7 trillion won in the second quarter of 2013.
As you can see above, Samsung’s market share increased 1.1 percentage points (from 21.3 percent to 22.4 percent), and it shipped 4 million more smartphones (77.0 million). It estimates that worldwide smartphone sales rose 0.7% to 340 million units.
The semiconductor unit recorded 2.64 trillion won in operating profit. A lacklustre iPhone line-up, high margins (and the resultant high prices) and a lack of innovation might be hurting the company more than they realise. The new models proved to be the right mix of style and features and helped Samsung grow profits in the quarter. In fact, the company is also set to release new devices on the market including galaxy note that is to be launched next week. Samsung plans to new Galaxy Note model in early August, but expectations for new model sales are now low.
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Samsung’s system LSI business improved from the first quarter this year on stronger demand for 14nm mobile application processors in premium smartphones and increased sales of high megapixel image sensors.
