Samsung Q2 profit surge on strong Galaxy S7 sales
Samsung Electronics expects to beat market expectations and post 8.1 trillion won ($7 billion) in operating profits for the second quarter of the year, backed by strong Galaxy S7 and S7 Edge sales, its earnings guidance shows.
It is a further surge from its first quarter's 6.68 trillion won which was achieved thanks to the highest profit from its mobile division in two years.
The profit is an increase of 17.39 percent from a year ago, and its highest since the first quarter of 2014.
In revenue, it expects 50 trillion won, a rise of 3.01 percent. Samsung has consistently posted below 50 trillion won in sales and the second quarter jump means it has recovered.
Analysts in South Korea estimate that the mobile division contributed over 4 trillion won, thanks to the popularity of the Galaxy S7 and S7 Edge, launched in March.
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.
The precise contribution of each division will be announced in Samsung's full second quarter earnings report to be released at the end of the month.