Thanks to strong sales of Galaxy S7 and Galaxy S7 Edge phones, Samsung Electronics reported its highest profits in over two years, whose operation profit was up 18 percent and revenue was up 5 percent.
Shenzhen, Guangdong -- (SBWIRE) -- 07/28/2016 -- Samsung Electronics, the world's largest smartphone maker, published its full second-quarter earnings, which were indicated the company's highest profits in over two years. Operating profit was 8.14 trillion KRW ($7.22 billion), up 18 percent, while revenue was 50.94 trillion KRW ($45.2 billion), up 5 percent. Thanks to expanded sales of its flagship Galaxy S7 and S7 Edge phones, the company said Thursday its key mobile division enjoyed "substantial earnings improvement" in the second quarter.
Samsung's mobile division accounted for over half of the revenue and profit thanks to strong sales of its flagship Galaxy S7 and S7 Edge phones. And the larger and more expensive Galaxy S7 Edge made up over half of Galaxy S7 sales, improving big profitability for the high-end lineup of Samsung smartphones.
Although Samsung also benefited from a streamlined mid-to-low-end product lineup, the company reduced its mid-to-low-end Galaxy models to cut costs. During the earnings conference call, Samsung's mobile business officially said the company will only launch the Galaxy C series exclusively for Chinese consumers.
Samsung beat forecasts even as growth in the overall smartphone industry slowed in the last quarter. Its biggest rival Apple, the world's second-largest smartphone maker, is struggling to boost iPhone sales but reported a 27 percent quarterly drop in profit caused by iPhone sales decline. Samsung estimated it gained between 75.6 and 78.3 million smartphone sales during the second quarter, about twice as many as Apple's 40.4 million iPhone sales.
"Looking ahead to the second half of 2016, the company expects its solid performance to continue… mainly driven by earnings increase in the component business due to sales growth in high value-added products," an earnings statement said.
Samsung expects to maintain solid sales through the third quarter with the launch of a new large-screen flagship smartphone. The company is scheduled to announce the latest Galaxy Note series, the Galaxy Note 7, on Aug. 2. Apple, Samsung's main rival, is said to release its next innovative iPhone model, iPhone 7, in September 2016. There will be another fierce competition between Samsung and Apple in smartphone market.
The big hit of Samsung Galaxy S7 and Galaxy S7 Edge is also attracting more and more iPhone users to wonder about switching their iPhone to Galaxy S7 or upcoming Galaxy Note 7. However, it is quite difficult for iPhone users to transfer data from iPhone to Samsung phone. Leawo Software, one of the leading developers and providers for multimedia software of Samsung, releases a piece of data transfer software to solve the data transfer problem between Samsung phone and Apple iPhone.
About Echo
Echo, the fulltime web content writer for the Chinese software company - Leawo Software, a multimedia solution and iTunes utilities provider. She is skillful and professional at tips for iPhone backup and data recovery, who writes about news and tips of Apple products and Android phones. The programs she has used and reviewed include iTunes, iOS devices, iTransfer, Android phone, and so on. These programs are the main sources that she writes articles or news about.