It was Samsung’s most profitable quarter in two years mostly attributed to the strong sales of its flagship Galaxy S7 smartphone.
Advertisement
The company reported revenue was 50.94 trillion won ($45.2 billion) in the second quarter, up 5 percent on a year ago, with operating profit coming in at 8.14 trillion won ($7.22 billion), up 18 percent.
“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.
In the third quarter, the South Korean company expects that the release of a new large-screen flagship smartphone will help maintain sales of high-end smartphone portfolio, led by the Galaxy S7 and S7 Edge.
According to numbers released Thursday from IDC, shipments for Samsung are up 5.5 percent from the same period previous year.
Samsung will take the wraps off its much-awaited Galaxy Note 7 on August 2, and if rumors are to be believed, the device will go on sale in launch markets the same day. “Through the consistent price policy, we will raise consumer and market confidence”.
Amid growing demand for solid-state disks for computers, stocks were very tight at the end of the second quarter, but demand is expected to be stronger in the third quarter, the company said. Vivo had 9.1 percent market share, an 80.2 percent year-over-year change.
Samsung’s mobile division earned 4.32 trillion won in operating profit, up 56% from a year earlier. The company’s smartphone division accounts for half of the revenue and profit it generated during the recent quarter. The company plans to expand the proportion of high value-added products such as flexible and high-resolution displays in its product mix. Reviewers raved about the S7 and S7 Edge smartphones, and the S7 Edge is widely considered the best Android smartphone on the market – possibly the best ever made. According to market research firm Canalys, Samsung now has 24% share in the global smartphone market.
By contrast, semiconductor operations were sluggish, with operating profit falling 22% year-on-year to 2.64 trillion won.
Advertisement
Numerous aspects of the forthcoming Samsung gadget are not like any other smartphone in tech giant’s iconic Galaxy Note phablet line.
