Samsung Q2 Profit Rises As S7 Delivers Strong Sales
Samsung has posted healthy quarter two results amid strong sales of its flagship Galaxy S7 and S7 smartphones.
Samsung’s net profit of 5.85 trillion Korean won (around $6.9 billion) was up from 5.75 trillion won year-on-year, with operating profit of 8.14 trillion won up from 6.9 trillion won. Revenue of 50.94 trillion won was up from 48.54 trillion won year-on-year.
Samsung’s IT & Mobile Communications (IM) division was a major contributor, with Samsung stating it “saw substantial earnings improvement led by expanded sales of flagship products such as the Galaxy S7 and S7 edge”.
The IM division posted sales of 26.56 trillion won, up from 26.06 trillion won year-on-year, with operating profit of 4.32 trillion won up from 2.76 trillion won.
“Samsung’s earnings improved QoQ thanks to strong sales of its flagship Galaxy S7 and S7 edge smartphones,” Samsung stated of its IM division.
“Additionally, the company achieved growth in the second quarter by maintaining the profitability of mid-to-low-end models, such as the Galaxy A and J series, and improving the product mix by raising the sales proportion of the Galaxy S7 edge to over 50 per cent.”
Looking ahead to the second half, Samsung states that demand for smartphones and tablets “is forecast to increase, however market competition is expected to strengthen as other companies release new mobile devices”.
The Galaxy Note 7 will be unveiled next week, with Samsung stating, looking ahead to the third quarter, “the release of a new large-screen flagship smartphone will help to maintain solid sales of high-end smartphones led by the Galaxy S7 and S7 edge”.
Samsung’s Consumer Electronics division posted sales for the quarter of 11.55 trillion won, up from 11.2 trillion won year-on-year, with operating profit of 1.03 trillion won, up from 0.21 trillion won. Its Semiconductor business recorded sales of 12 trillion won, up from 11.29 trillion won year-on-year, with operating profit of 2.64 trillion won down from 3.4 trillion won.