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Operating profit in the company’s mobile division jumped by 57% when compared to the same quarter past year.
“The launch of the Galaxy Note 7 in the second half and the price maintenance of Galaxy S7 will raise the average sales price of smartphones in the third quarter”, Lee added.
Samsung Electronics Co reported on Thursday that the earnings results that were the best in two years as consumers have snapped up their Galaxy smartphones.
“With a new Galaxy Note 7 flagship model rumored to be on the way, Samsung will be able to strengthen its smartphone leadership in the second half of the year”, Strategy Analytics analyst Neil Mawston said in a statement.
With no official comments made yet, reports suggest that Samsung has plans to augment its OLED panel productions to cater the demand for Apple’s iPhone screens next year.
Meanwhile, the company also announced that its consumer electronics division achieved significant earnings growth YOY led by strong sales of its premium lineup.
“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, research manager at the analysis firm IDC.
At the same time, other phone makers such as Huawei, OPPO and vivo also gained market share, helped by sales in emerging markets such as in Indonesia and the Middle East.
Apple undoubtedly was hurt by the fact that its principle cash cow, the iPhone, witnessed a 15 percent drop in shipments to 40.4 million units in the quarter, down from 47.5 million in the third quarter of 2015.
The company is expected to unveil its new Galaxy Note smartphone next week and will likely start selling its phablet about a month before rival Apple Inc launches its new iPhones in September. Even so, Samsung said demand for mobile and non-volatile storage chips increased, helped by the company’s competitive edge in differentiated products, including 20nm DRAM, V-NAND and 14nm mobile application processors.
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Samsung’s mobile division saw its operating profit jump 57% in the second quarter from a year earlier to 4.32 trillion won.
