Samsung Projected to Report Record Profit in last Two Years
Samsung Electronics today announced earnings guidance for Q2 2016. The company estimated the total sales of 50 trillion won and operating profit of approximately 8.1 trillion Korean won, making it best quarter result in last two years.
The continued stellar performance of Galaxy S7 and S7 Edge smartphones with curved variant outselling the flat one resulted into healthy profit for the Korean company.
Last year’s figures stood at 48.5 trillion won and 6.9 trillion won in terms of sales and operating profit respectively. So, this is a steep hike compared to 2015.
The sales of Galaxy S7 smartphones are predicted to decline in Q3 and Samsung aims to recover that with Galaxy Note 7 launch in next month.
Unlike for the S6 Edge last year which suffered from production problems, Samsung has secured a high production rate for the more popular curved-edge model and successfully met demand.
The flagship phones beat initial forecasts and sold 10 million units in the first quarter and sold an additional 16 million units by June, according to analysts in South Korea.
The strong operating profits also indicates that Samsung’s semiconductor division contributed more than 3 trillion won, despite price drops in DRAM and NAND flash chips.