Samsung made good on the strong financial projections it made earlier this month, reporting “substantial earnings improvement” fueled by strong sales of its premium Galaxy S7 and S7 Edge smartphones and bolstered by aggressive cost management.
•Operating profit in the June-ending quarter rose 18% from the year-earlier period to 8.1 trillion won ($7.17 billion) on sales of almost 51 trillion won ($44.9B). The company had earlier forecast revenues of 8.1 trillion won, and revenues in the 49 trillion won to 51 trillion won ($43.1B to $44.9B) range. The numbers represent the company’s strongest results since Q1 2014.
•For the second quarter in a row the company’s mobile division contributed the most profit to the bottom line. Samsung now projects the good times will continue into the second half of the year, with strengthening sales of chips and displays offsetting an increasingly challenging smartphone market.
•The Galaxy S7 line has been on the market for about 5 months now, and analysts estimate Samsung has told about 27 million of the devices so far. Only now are sales starting to level off, analysts say. Samsung is expected to announce another flagship smartphone August 2, and is hoping that the new device will pick up where the S7 leaves off.
•The happy results come on the heels of news that rival Apple sold 15% less iPhones in its June-ending quarter. MS