SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung’s Q2 earnings show just how big of a hit the Galaxy S7 series has been


Last updated: July 28th, 2016 at 06:08 UTC+02:00

Samsung is most certainly enjoying the fruits of its labor with the Galaxy S7 and the Galaxy S7 edge. The company announced its earnings for the second quarter ended June 30 2016 today. Revenue touched KRW 50.94 trillion ($45 billion) in the quarter which is an increase of KRW 2.40 trillion year-over-year. As expected, the company’s operating profit for the quarter hit KRW 8.14 trillion ($7.17 billion) registering a growth of KRW 1.24 trillion year-over-year. This is actually the highest operating profit of any quarter since the first quarter of 2014.

Samsung’s IT & Mobile Communications (IM) Division was a clear winner in this quarter. It saw its operating profit jump 57 percent to KRW 4.32 trillion while operating margin for the handset business jumped to 16.3 percent which is now at the highest it has been in two years. The company itself says that this substantial improvement in earnings is led by sales of the Galaxy S7 and the Galaxy S7 edge while a streamlined mid to low-end lineup also contributed to the improved profitability.

The component business did come under pressure this quarter. Overall earnings declined 28 percent year-over-year primarily due to the fall in average selling price of display panels and chips. The company did note that demand for mobile semiconductors and SSD increased during the quarter.

Samsung expects its solid performance to continue in the second half of 2016 primarily driven by an earnings increase in the component business due to sales growth in high value-added products as well as stable demand and supply conditions. The mobile division forecasts that its marketing expenditure will increase over the coming months. Samsung expects the component business to maintain good performance as demand and supply conditions for memory chips and LCD panels improve.


Source General EarningsSamsung
Load 0 comments

You might also like

Samsung to use more LG batteries in its low-end and premium phones

Samsung may have driven LG out of the smartphone market, but it’s more than happy to source components f …

  • By Adnan Farooqui
  • 2 weeks ago

Samsung and Apple jointly hold 60% of global tablet market share

According to the latest report by market research firm Strategy Analytics, Samsung and Apple jointly hold 60% …

  • By Sagar Naresh
  • 2 months ago

Samsung’s Q1 2022 profit jumps 51%, thanks to strong chip and sm …

Earlier this month, Samsung had posted its revenue estimates for Q1 2022. Today, the company published actual …

  • By Asif Iqbal Shaik
  • 2 months ago

New WhatsApp update adds extra layer of privacy to chats

The latest WhatsApp update for Android and iOS adds another layer of privacy for disappearing chats. Media sen …

  • By Anil Ganti
  • 3 months ago

Samsung likely to post 50% higher operating profit for Q1 2022

Samsung announced its Q1 2022 earnings estimates earlier today. Thanks to solid gains through semiconductor ch …

  • By Asif Iqbal Shaik
  • 3 months ago

WhatsApp voice messaging is about to get a whole lot better

On Wednesday, WhatsApp announced that it is bringing a bunch of new features to voice messages. These features …

  • By Sagar Naresh
  • 3 months ago