Net income, excluding minority interests, was 5.83 trillion won ($6.8 billion) in the period ended June, the Suwon, South Korea-based company said in a filing Thursday. The analysts have forecasted that the net income of 5.79 trillion won.
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Profit for the smartphone division climbed 57 percent from a year earlier to 4.32 trillion won, the highest since the second quarter of 2014.
Earlier on Wednesday, the largest smartphone maker Samsung reported its most profitable quarter in two years, driven by increased sales of its flagship products such as the Galaxy S7 and S7 edge.
“Outside of Samsung’s Galaxy S7 flagship, a majority of vendors, including Apple, have found success with more affordable models compared to their flagship handsets”, said Anthony Scarsella, researcher manager, Mobile Phones, IDC.
During the quarter Samsung maintained its lead over Apple thanks to strong Galaxy S7 and S7 Edge sales.
The smartphone market is showing signs of growth again, but barely, with shipments up almost 1 percent year-on-year in the second quarter, according to Strategy Analytics. The company launched the latest versions of its flagship smartphones in March, several weeks sooner than it did a year ago.
It said Apple shipped 40 million iPhones in the quarter, a second consecutive annual decline in shipments.
Banners for the Samsung Galaxy S7 and S7 Edge smartphones are displayed at the company’s D’light flagship store in Seoul on March 11.
Robust smartphone sales have aided Samsung Electronics report its best 3-month period results in more than eight quarters, while Apple Inc (NASDAQ:AAPL) is expecting another drop in the current period.
The South Korean giant delivered 77 million smartphones in the quarter, up 5.5 per cent from a year ago, for a market share of 22.4 per cent, research firm IDC said. “A streamlined mid to low-end smartphone lineup also contributed to improved profitability”. “Operating profit for the IM Division was KRW 4.32 trillion”, it added. During the earnings meeting, Samsung’s mobile business representative said the company would launch the Galaxy C series entirely for Chinese consumers.
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For processors, demand for 14-nanoameter mobile application processors increased as well as image sensors. Samsung is expected to unveil the Galaxy Note 7 phablet on Tuesday, August 2.
