Samsung said that operating profit would be 8.1 trillion won, or about $7 billion, in the second quarter, compared with 6.9 trillion won a year earlier.
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Such a positive performance can be attributed to the Galaxy S7 flagship smartphone, which recorded a sales volume of approximately 16 million units in the second quarter alone, and the Consumer Electronics Division’s efforts for profitability improvement.
Operating profit at the mobile unit probably rose 53 per cent to 4.23 trillion won in the second quarter, according to the average estimate of six analysts surveyed by Bloomberg News. And while these results are only preliminary, Samsung has historically done a pretty good job of forecasting its earnings.
Samsung recently acquired cloud player Joyent for an undisclosed sum.
That number could rise higher once final second-quarter results are reported later this month, analysts estimate, though the company didn’t disclose profit estimates by division.
Finalized earnings of the both firms will be announced later this month.
A poster of Samsung’s Galaxy S7 at the Mobile World Congress in Barcelona, Spain on February 22, 2016. Samsung’s new screen technology – which uses what are called organic light-emitting diodes, or Oledss – in its own smartphones has given it a production advantage.
Samsung’s smartphone business shrank past year as Apple grabbed market share at the high end with its iPhone 6, and Chinese rivals like Huawei Technologies Co Ltd [HWT.UL] did well in the budget segment. However, considering Samsung’s Galaxy S7 and the S7 Edge have managed to do so well, despite being priced around the same figure as the iPhones, it shows that the analysts could have been wrong.
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In its 2016 second-quarter earnings preview released on Thursday, leading smartphone manufacturer Samsung Electronics has revealed that its operating income in the mentioned quarter recorded a 17 percent year-on-year increase.
