Samsung profits boosted by smartphone sales

Samsung S7 phonesImage copyright

Strong smartphone sales have helped Samsung Electronics post its best quarterly results in more than two years.

Second-quarter operating profit jumped 18% to 8.1tn Korean won ($7.17bn; £5.46bn), in line with the company’s guidance issued in July.

Operating profit at its mobile division soared 27% year-on-year to 4.3tn won.

That is mainly driven by strong sales of its Galaxy S7 and Galaxy S7 Edge smartphone models.

Samsung predicts continued increase in demand for its smartphones and tablets in the second half of the year.

But the company also indicated that “market competition is expected to strengthen as other companies release new mobile devices”.

Samsung is confident that the release of a new large-screen flagship smartphone in the third quarter will help maintain the track record of its smartphone sales.

Samsung’s results are in contrast to rival Apple. Earlier this week, the US company reported a 15% drop in iPhone sales for the April-to-June quarter. And it also said it expected sales to fall again in the current quarter.

As for other divisions in the Samsung conglomerate, the company is forecasting a decline in TV demand for the second half of the year, citing “weakened demand in Europe and a prolonged economic slowdown in emerging markets”.

The South Korean corporate giant also reported earnings growth in its consumer electronics division, which sells refrigerators, washing machines and air conditioning units.

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