Samsung records highest profit in two years as the Samsung S7 sales boom. The company predicts that its performance will raise for the rest of the year because demand for its lucrative components, such as high-end OLED displays that are used as screens for premium smartphones, is expected to increase substantially.
The company said its April – June net income rose 2pc over last year to 5.85 trillion won (£3.9bn), compared with 5.75 trillion won a year earlier.
The sales rose 5pc to 50.94 trillion won, while operating profit surged 18pc to 8.14 trillion won, in line with the company’s guidance earlier this month.
Samsung’s mobile business reported 4.32 trillion won in operating income during the three-month period, its best quarterly performance since the second quarter of 2014.
The high profits were driven by strong sales of its Galaxy S7 and Galaxy S7 Edge smartphone models. The two phones were launched in March and many Kenyans opted to buy them because of their upgraded features. The two come with better cameras that can be used in the dark, bigger display and GEAR VR.
The company is forecasting a decline in TV demand for the second half of the year, citing “weakened demand in Europe and a prolonged economic slowdown in emerging markets”.
The South Korean corporate giant also reported earnings growth in its consumer electronics division, which sells refrigerators, washing machines and air conditioning units.
On the other end, Apple recorded a drop in their quarterly revenue of $50.6 billion and quarterly net income of $10.5 billion, or $1.90 per diluted share, and $58 billion and net income of $13.6 billion, or $2.33 per diluted share, in the year-ago quarter.
Apple chief executive Tim Cook said the results reflected “stronger customer demand… than we anticipated”.
The firm said it expected sales to fall again in the fourth quarter to between $45.5bn (£34bn; €41.4bn) and $47.5bn.