Samsung said net income rose 2 percent year over year to 5.85 trillion won ($5.1 billion) for the three-month period ended June 30. The company reported that its second-quarter revenue hit 50.9 trillion won, or $45.2 billion.
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It was Samsung’s most profitable quarter in two years mostly attributed to the strong sales of its flagship Galaxy S7 smartphone.
That said, Samsung expects demand for smartphones and tablets in the second half to increase, but admits market competition will strengthen as “other companies” release new mobile devices.
Profits are expected to be largely driven by its components business, including demand for storage like solid state devices (SSDs), which is expected to pick up in the second half as smartphone makers launch new products.
According to preliminary results from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 343.3 million smartphones worldwide in the second quarter of 2016 (2Q16).
Samsung was the biggest beneficiary of sluggish sales of Apple Inc’s iPhone 6S models, as U.S. wireless carriers promoted S7 phones, helping to reduce Samsung’s own marketing expenses. Samsung’s mobile division saw a 57 percent increase in operating profit in the latest quarter.
Of course the Tame Apple Press is furious, after all how dare Samsung do better in smartphones when that was Apple’s turf?
The company shipped close to 80 million smartphones during the quarter – about twice as many as Apple did as its flagship iPhone 6 comes to the end of its life cycle.
How could we tell with any confidence that the Galaxy S7 played a big part in Samsung’s much improved margins in the past quarter?
Samsung presented the first of its leading Edge smartphone series, which features curved displays that had a function to wrap around two corners of the device. The company’s smartphone division accounts for half of the revenue and profit it generated during the recent quarter. As it failed to gain the demand after the release for the issues and troubles raised into the mass producing of the curved displays in the year 2015. The company has enjoyed tremendous success with its Galaxy S7 thanks to heavy carrier promotional support and Samsung’s campaign to give its Gear VR headset to Galaxy buyers. The company said the Galaxy S7 Edge sales proportion increased. It’s also worth noting that Samsung has also announced that it will debut the Galaxy C series exclusively for the China market.
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A visitor passes by banners adverting Samsung Electronics’ Galaxy S7 Edge smartphone at the company’s showroom in Seoul, South Korea, Thursday, July 28, 2016.
