Operating profit at the mobile unit probably rose by 53% to 4,23 trillion won in the second quarter, according to the average estimate of six analysts surveyed by Bloomberg News. Sales were 49.8 trillion won ($43.8 billion USD) in the quarter, up from 48.5 trillion won from the same period a year ago.
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It was the best performance in nine quarters.
“The strong popularity of the Galaxy 7 models and brisk sales of flash memory chips were key factors behind the stronger-than-expected second quarter results”, a company official said.
Samsung’s distinctive curved screen displays are likely to become a lot more common in the industry, as Samsung’s components business gains traction selling organic light-emitting diode, or OLED, display panels, to outside customers like Apple and other Android handset makers.
Apple’s operating margin was almost three times higher than Samsung’s in the fourth quarter of 2015. The well-received Galaxy S7 has been crucial to galvanizing the company.
The most important drive behind its forecast-beating earnings was smartphones. Galaxy S7 models, which were timed to go on sale earlier than usual this year, have capitalised on a lull in new iPhones from Apple.
The pictures show a polished-looking device that bears a strong resemblance to Samsung’s latest flagship smartphone, the Galaxy S7, which was released back in March. Sales were expected to rise by 3%.
Brokerage houses were not optimistic about Samsung’s second quarter at the beginning.
“We think it is the most promising stock among Asian tech companies”, Chung said. As a result of this guidance, Samsung’s shares also jumped by 2%.
Despite its huge size and premium price tag, the Samsung Galaxy Note 5 is the single most popular Android OS handset in use around the globe. Samsung prefers to roll out its top-of-the-line S models at the start of the year.
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After the company released its earnings forecast for the second quarter, a report from Korea claims the company has shipped a total of 26 million Galaxy S7 and Galaxy S7 Edge units so far. It was in early 2014 that the company managed to beat this figure by generating an operating profit of $7.34 billion.
