Samsung has seen its best profits in over two years and most of it is thanks to the Korean giant’s smartphone business. Samsung released its earning guidance for Q2 2016 and, despite the competition from Apple and Chinese rivals, is expecting the operating profit to reach 8.1 trillion won (about RM28.1 billion).
Samsung managed to rake in 8.84 trillion won (roughly RM30.6 billion) back in January 2013 and 8.5 trillion won (approximately RM29.5 billion) in Q1 of 2014. While this year’s profits aren’t as high, it still accounts for a 17% increase compared to last year’s profits. Other than that, Samsung also expects the company’s revenue to increase by three percent from 48.5 trillion (roughly RM168 billion) to 50 trillion won (about RM173 billion).
According to Reuters, the mobile division is the top earner for this quarter with the division’s profit probably increased by 54.5% from the same duration a year ago. Other than that, Yonhap News reported that Samsung has shipped about 15 million Galaxy S7 and S7 edge units from April to June.
Samsung has cautioned that sales of the S7 will slow down in the second half of the year, but it should be able to maintain its profits between 7 trillion won to 8 trillion won. This is expected to be due to its chip business and the launch of the Galaxy Note 7.
The Galaxy S7 and S7 edge are definitely the game-changers Samsung needed to bounce back from Apple’s reign over the smartphone market. The S7 made the necessary adjustments and had the right features (waterproof, microSD card support) to regain customer trust. We’ll just have to wait and see if the Galaxy Note 7 is capable of emulating the success.
(Source: Samsung, Engadget, Reuters, Yonhap News)
