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Samsung has reported second-quarter revenue of $45bn and an 18% year-on-year increase in operating profit to $7.2bn, boosted by strong sales of Galaxy S7 and S7 Edge smartphones.
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Operating profit at the company’s mobile division was $3.8bn, 27% higher than the same period a year ago.
While the Galaxy S7 was Samsung’s top earner, “a streamlined mid to low-end smartphone line-up also contributed to improved profitability”, according to the company.
The results are in sharp contrast to those of rival Apple, where quarterly profits were down 27% year on year to $7.8bn as iPhone sales fell 15% compared with the second quarter of 2015.
While Apple expects further falls in iPhone sales in the current quarter, Samsung predicts the rise in demand for its smartphones and tablets will continue through the second half of the year.
However, the company also expects more competition as other companies release new mobile devices. It has said it plans to strengthen its high-end line-up, while “maintaining solid profitability” of its mid to low-end products.
In the third quarter, the South Korean company expects that the release of a new large-screen flagship smartphone will help maintain sales of high-end smartphone portfolio, led by the Galaxy S7 and S7 Edge.
Samsung said it will focus on growing smartphone sales, including this year’s new Galaxy A and J series, and the debut of the Galaxy C series exclusively for the Chinese market.
Samsung said its consumer electronics division also achieved significant earnings growth, revenue from display panels improved, and demand for semiconductors for mobile and solid state drives (SSDs) rose.
Looking ahead, the company expects growth in high-density, premium SSD products to continue, and greater demand for mobile storage stimulated by the launch of new products from smartphone manufacturers.