Samsung reports highest profit for 2 years thanks to strong Galaxy S7 sales
Earlier this month Samsung forecast its most profitable quarter for two years, and today it delivered on that promise with its Q2 2016 results.
The Korean tech giant reported a 8.14 trillion won ($7.22 billion) operating profit on revenue of 50.94 trillion won ($45.2 billion). That profit figure is up 18 percent year-on-year, while the quarter’s revenue represented a five percent annual increase.
The company’s mobile division accounted for more than half of the firm’s revenue and profits. Samsung said that, like the previous quarter, sales of its flagship Galaxy S7 and Galaxy S7 Edge, which have sold better than its previous Galaxy S6 phones, and a more “streamlined” approach to its cheaper phones — including the successful mid-range Galaxy J series — helped it generate impressive financials.
What’s particularly interesting to note is that the Galaxy S7 Edge accounted for more than half of Samsung’s Galaxy S7 sales in the quarter. Given the higher sale price and higher margins, that was a major boost for the firm.
Looking forward, Samsung said that it will maintain its improved year-on-year results despite increased competition as “other companies release new mobile devices” — that chiefly means Apple, of course, which is said to be targeting a mid-September reveal for its next iPhone. But Samsung itself has new products coming — the next Galaxy Note will be launched next week, while it said it has plans for more Galaxy A and J series devices and a new Galaxy C series that is just for China.