Thursday, 28 July 2016

Galaxy S7/S7 edge sales drives Samsung profit to two-year high

Riding high after the huge success of Galaxy S7 and Galaxy S7 edge and strong OLED sales, South Korean tech giant, Samsung had strong earnings in April-June period.

In Q2 2016 Samsung's profit rose 18% from a year earlier to 8.1 trillion won ($7.17 billion), the highest since the first quarter of 2014. Sales were up 5 percent to KRW 50.94 trillion ($45 billion) and net income rose 2 percent from a year ealier to KRW 5.85 trillion ($5.17 billion), compared to KRW 5.75 trillion a year earlier

Samsung's mobile business remained the top earner and reported a profit of 4.32 trillion won ($3.82 billion), up 57 percent from a year earlier, its best quarterly performance since Q2 2014. The increase in earnings was due to strong sales of Galaxy S7 and Galaxy S7 edge smartphone globally. In addition to the flagship devices, the sales mid-low-end models Galaxy A and J series, also contributed to the earnings.

Samsung estimates it shipped between 75.6 million and 78.3 million smartphones during the quarter, twice as many as Apple's 40.4 million iPhone sales.

Samsung is expecting strong sales in the second half of 2016 as well. The company will unveil the Galaxy Note 7 featuring a giant screen and stylus on August 2 and will start selling it a month before rival Apple launched its new iPhones in September.


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