This Thursday Samsung Electronics Co. reported earnings results which are much more than their forecast. Samsung announced 2% profit in 2Q net Profit. The results are the best in last two years and as a result, the costumer’s snapped up Galaxy smartphones of Samsung, showing that the company is getting its mojo back at the time when competitors don’t manage to supply new smartphones.
The South Korean company predicts that its performance will keep on staying “solid” during the year. It is because of the customer demand for its profitable components, like high-end displays called OLED, which are used as screens for top smartphones, is expected to grow “substantially.” At the same time, the company estimates to spend more on the mobile marketing of its future large-screen smartphones which will be presented next week. And which Samsung uses to sidetrack consumers from new iPhone of Apple.
The world’s leading smartphone manufacturer, Samsung declared that its April-June net income rose 2% over-a-year earlier to 5.85 trillion won ($5.17 billion), paralleled with 5.75 trillion won a year earlier.
In fact, it was more than it has been estimated, the forecast has been reviewed upward in recent months in order to mirror more-than-expected sales of the new phones. According to a financial data provider FactSet, analysts had forecasted net income of 5.79 trillion won.
A number of sales grew by 5% leading to the profit of 50.94 trillion ($45 billion), while operating profit rushed 18 percent to 8.14 trillion profits ($7.19 billion), in line with the company’s management made earlier this month.
The world’s second-largest smartphone maker and its competitor, Apple is struggling to boost iPhone sales. It reported a 27 percent quarterly decline in profits.
During the three-month period Samsung’s mobile industry reported 4.32 trillion profits ($3.82 billion) in operating income; it is considered its best quarterly performance since the second quarter of 2014.
Samsung approximations of its shipped smartphones are between 75.6 million and 78.3 million during the quarter, which is about twice as many as Apple’s 40.4 million iPhone sales.
There are again high profits due to The Galaxy S7 and S7 Edge smartphones. Samsung launched the latest versions of its leading smartphones in March; it is several weeks earlier than it did last year. In fact, early launches of its products helped Samsung account high sales during the first quarter, and the latest results dismissed doubts it could endure the momentum during the second quarter, as consumers keep on snapping up new phones in the spring.
Besides, Samsung reduced its mid- and low-end Galaxy models, to be able to reduce the costs. During the earnings meeting, Samsung’s mobile business representative said the company would launch the Galaxy C series entirely for Chinese consumers.
The high performance of Samsung’s mobile division is showing that its experiment with smartphone designs is paying off.
Samsung presented the first of its leading Edge smartphone series, which features curved displays that had a function to wrap around two corners of the device.
But in 2015, because of trouble connected with producing those curved displays it failed to capture demand. The S7 Edge, which had similar designs as its prototype, showed strong demand among consumers and this time Samsung managed to provide the products on time. The company announced that the sales proportion of Galaxy S7 Edge has improved.