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Samsung posts record profit

by on28 July 2016

Thanks Galaxy S7 and Galaxy S7 Edge

While Apple is desperately trying to spin its sliding iPhone sales, its rival Samsung has posted its highest profit since the first quarter of 2014 thanks to strong sales of the Galaxy S7 and Galaxy S7 Edge.

Revenue has climbed to $42.1 billion up five percent on year on year, while operating profit was $7.8 billion which was an increase of 18 percent.

Samsung's mobile division accounted for over half of the revenue and profit. The mobile division posted operating profit of more than the firm's two-year high of $2.9 billion in the previous quarter.

Samsung said that the reason it did so well was because of its strong sales of the Galaxy S7 and S7 Edge handsets. The bigger and more expensive Galaxy S7 Edge made up over half of Galaxy S7 sales, improving profitability for the line-up. Its sales of its low- to mid-range smartphones also did well in the quarter.

Strategy Analytics thinks the outfit must have sold about 78 million phones to make that sort of dosh..

Samsung said that the company expects to maintain solid sales through the third quarter with the launch of the Galaxy Note 7 which is a large size rather expensive gizmo. 

Of course the Tame Apple Press is furious, after all how dare Samsung do better in smartphones when that was Apple's turf?  Instead there are a few stories which point to Samsung's fall in semi-conductor sales. .Operating profit fall 22 per cent year on year  and the display unit's operating profit slumped 74 per cent .  In the case of display though this figure is a victory. Last quarter it traded at a loss.

Samsung is expecting things to get even better in the second half of 2016. mainly driven by earnings increases in the component business due to sales growth in high value-added products.

Last modified on 28 July 2016
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