Samsung Electronics is continuing to ride high on the success of its Android-powered Galaxy S7 and Galaxy S7 edge smartphones.
Buoyed by the flagship smartphone's sales, the company's mobile division has posted an operating profit of $3.82 billion or 4.32 trillion won in Q2 2016. This figure is a substantial increase over the 3.89 trillion won it posted in Q1 2016.
The company's Q2 2016 operating profit sees an increase of 18 percent, when compared with Q2 2015, to $7.19 billion or 8.14 trillion won. This number is the highest for the company since Q2 2014. Samsung Electronics also seems optimistic of the future and expects a steady growth.
"Looking ahead to the second half of 2016, the company expects its solid performance to continue compared to the first half, mainly driven by earnings increase in the component business," notes the company in its report on Thursday, July 28.
The income for the company saw an increase of 2 percent in the second quarter when compared with Q2 2015. The net income for Q2 2016 was 5.85 trillion won (approximately $5.17 billion), up from 5.75 trillion won in Q2 2015.
For those wondering how Samsung's smartphone shipments fared in Q2 2016 — the company shipped nearly 75.6 million to 78.3 million handsets in this period, which when compared to rival Apple (40.4 million iPhone's shipped) is nearly double.
The incredible performance of the company's mobile division in Q2 2016 bears testament to the fact that Samsung's experiments with its designs and features for its smartphones is finding favor with consumers. No surprise then that Samsung continues to wear the mantle of the numero uno smartphone maker in the world.
Looking to the future, Samsung is of the belief that while the demand for its smartphones and tablets will see a spike in H2 2016, the competition in the smartphone market will also heat up owing to several OEMs launching new mobile devices. Samsung's archrival, Apple, is also anticipated to introduce the iPhone 7 in September this year.
Owing to increased competition, Samsung says its mobile profits would see a dip in H2 2016 as it will have to intensify its marketing efforts, which will result in higher costs being incurred.
Samsung has a new product in the pipeline — the much-awaited Galaxy Note 7 — which is slated to launch on Aug. 2. With the arrival of the Galaxy Note 7, the company will have another robust phablet that will likely boost the sales of its mobile division even further.
Photo: Andri Koolme | Flickr