Samsung will reportedly announce its new Galaxy J2 (2016) next week, but as often happens with upcoming smartphones, the details of the new J2 have leaked before its debut. If so, does Samsung intend to come up with a new Gear VR headset as well?
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Samsung is the world’s No. 2 chipmaker and has dominated production of faster, larger-capacity chips using a technology called 3D NAND. According to analysts, the massive jump in Samsung Electronics profit for the June quarter was powered by the surging demand for the newly released Galaxy S7 smartphones, better cost controls and subdued competition from sluggish iPhone sales. But this doesn’t seem to be the case when there is no question over whether Chinese-designed phones are good; as shown in the P9 Plus and P9, they are actually pretty awesome. All thanks to the strong sales of Samsung’s Galaxy smartphones which pushed profit growth for its mobile business.
According to the company’s earnings guidance, operating profit stood at eight.one trillion won, or nearly seven billion USA dollars during the April-to-June period, up more than 17 percent from a year ago.
Analysts attributed the figures to the firm’s aggressive cost-cutting efforts and brisk sales of the Galaxy S7, the latest version of its high-end, flagship smartphone.
Samsung probably sold 15 million units of the S7 in the quarter after shipping 10 million in March when it debuted, said Mr Greg Roh, an analyst at HMC Investment Securities in Seoul.
The results underscore how the South Korean company is defying a slowdown in the smartphone market.
It’s going to be the highest quarterly profit in last couple of years.
While that would boost profits in Samsung’s components division, it could hurt Samsung’s mobile business by depriving the Galaxy S series of a key selling point. The different timelines mean Samsung’s earnings often peak around the middle of the year, just as Apple’s is bottoming, and vice versa.
Those operating profits would be the company’s best in two years.
In the third quarter of 2014, Samsung’s mobile profit margin tumbled to 7.1%, from 18% the quarter before.
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.
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It predicted second-quarter sales of 50 trillion won, up from 48.5 trillion won a year ago.
