The Korean firm’s earnings guidance today estimated profit for the second quarter of 2016 at 8.1 trillion KRW ($7 billion) on revenue of 50 trillion KRW, around $43 billion.
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Operating profit at the mobile unit probably rose by 53% to 4,23 trillion won in the second quarter, according to the average estimate of six analysts surveyed by Bloomberg News.
Samsung Electronics Co. posted better-than-anticipated profit as continued demand for its Galaxy S7 smartphones helps turn around its mobile devices business.
“Samsung’s mobile unit is believed to have performed well thanks to robust sales of Galaxy S7s as well as an overhaul of its low- and mid-end handset line-up”, said Peter Lee, analyst at NH Investment & Securities.
The Samsung Galaxy Note 7 is one of the most awaited smartphones of this year. It would also be the first Samsung smartphone to come with a USB Type-C port, which could explain why Samsung is likely to push out a new VR that is compatible with its future smartphones.
Though the numbers are preliminary, Samsung today offered second quarter guidance that seems to confirm that the South Korean giant’s Galaxy S7 is a victor.
Unlike its two predecessors, the flagship Galaxy S7 combined a sleek curved-edged look that sets it apart from the iPhone, with practical features that consumers have long clamored for, including water resistance and expandable memory. The last time Samsung raked in more than KRW 8 trillion of operating income was during the January-March period in 2014 when it reported KRW 8.5 trillion in operating profit. The Galaxy S6 (5.47%) is second, the Galaxy S6 Edge third (3.41%) and the Galaxy S7 is fourth (3.20%). The forecast for operating profit is above expectations of analysts on Wall Street.
Between January and June this year, the Note 5 is the most popular Android handset, accounting for 7.82% of tests around the world.
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On the South Korean Stock Exchange, Samsung shares are now trading at 1,447,000 won, up 26,000 won or 1.83 percent on a volume of 161,523 shares.
