The South Korean company is hoping to prolong its solid sales in the third quarter, with the launch of the Galaxy Note 7, the latest version of its large-screen flagship smartphone. Revenue rose 5% year-on-year while operating profits grew 18%, making it Samsung’s best quarterly performance since early 2014.
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According to market research firm Canalys, Samsung now has 24% share in the global smartphone market.
Samsung said the launch of new smartphones and the increasing adoption of 6GB memory chips in high-end smartphones will spur shipments of mobile DRAM in the second half. Company’s shipments of tablet PCs are recorded at about six million units.
Apple posted an operating profit of US$10.1 billion and sales of $42.4 billion in the quarter ending June 25.
There are again high profits due to The Galaxy S7 and S7 Edge smartphones. “However, there are emerging signs that the global smartphone market has reached a bottom in the first half of 2016, and the growth outlook for the second half of this year is improving due to multiple big new product launches from Samsung, Apple and others”.
It should be noted however that Apple remains a hugely profitable organisation, but analysts are concerned about future product rollout as Apple’s two straight quarter decline, contrasts starkly with its prior 13 years of quarterly revenue reports without a decline, dating back to 2003.
Samsung Electronics executives have said that they will keep up pace, and try to maintain their every year increase in profits irrespective of competitive nature of the mobile-tech industry.
Samsung earnings by division.
“Profit at its mobile unit may dwindle a bit in the third quarter, but Samsung will again bring out its next Note device earlier than past year to battle it out”.
Both Apple and Samsung are looking forward to the release of the iPhone 7 and the new Galaxy Note. Its rival Apple, the world’s second-largest smartphone maker, is struggling to boost iPhone sales and reported a 27 percent quarterly drop in profits. Sales of OLED, or organic light-emitting diode, display panels rose, helped by healthy sales of flagship smartphones and higher demand for flexible displays for the S7 Edge.
Amid growing demand for solid-state disks for computers, stocks were very tight at the end of the second quarter, but demand is expected to be stronger in the third quarter, the company said.
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Samsung shares were down 0.1 percent as of 8.15 p.m. ET, compared with a 0.1 percent rise for the broader market .KS11.
