Samsung has had a troubling couple of years – with profits down in 2014, more drops predicted for 2015, and losing its top five status in China to manufacturers such as Xiaomi, Huawei and Oppo. However, backed by substantial Galaxy S7 sales, Samsung predicted its largest operating profit in more than two years.
As the world’s number one smartphone manufacturer, Samsung is predicting an operating profit of 8.1 trillion won ($7 billion) for April to June. This is up 17 percent from the 6.9 trillion won figure it posted for the same period last year.
Analysts have stated the well-received Galaxy S7, with its high volume of sales, and Samsung’s aggressive cost-cutting measures have contributed to the latest financial announcement. NH Investment & Securities analyst, Peter Lee, has said:
Samsung's mobile unit is believed to have performed well thanks to robust sales of Galaxy S7s as well as an overhaul of its low- and mid-end handset line-up.
Samsung’s stock also rose 1.8 percent in the early afternoon trading period, to around 1.45 million won, following the announcement.
However with Samsung set to release new products in the second half of this year, including the Galaxy Note 7, earnings are predicted to drop.