Wednesday, July 27, 2016

Samsung posts highest profits in over two years thanks to the Galaxy S7 and S7 edge

Strong sales of the Galaxy S7 and S7 edge have led to Samsung posting an operating profit of $7.22 billion (8.14 trillion won) in Q2 2016, up 18% from the same period a year ago. Overall revenue was $45.1 billion (50.94 trillion won), a 5% increase from Q2 2015.

The handset business accounted for half of Samsung's bottom line, with the division netting $3.83 billion (4.32 trillion won) in profit on a revenue of $23.5 billion (26.56 trillion won). Samsung noted that the larger and more expensive S7 edge model made up over half of the sales of its flagship series, with the Galaxy A series and J series also seeing an uptick in sales in the mid-range and low-end segments.

Looking ahead to the third quarter, Samsung says that the launch of a new large-screen flagship phone (the Galaxy Note 7, if you're wondering) "will help to maintain solid sales of high-end smartphones led by the Galaxy S7 and S7 edge:"

Samsung will focus on increasing smartphone sales under strong seasonality with the launch of a new model, while expecting marketing expenses to increase QOQ due to seasonality.



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