Samsung set for best quarter in over 2yrs on Q2 smartphone boost

Tech giant Samsung Electronics Co is poised to issue guidance for its best quarterly profit in more than two years, propelled by a surge in mobile earnings on the back of robust sales of its flagship Galaxy S7 smartphones. The South Korean giant will disclose its estimates for second-quarter earnings on Thursday, with analysts predicting a strong mobile division contributed to a 13 percent jump in operating profit from the same period a year earlier.

The average forecast from a Thomson Reuters survey of 16 analysts tips Samsung to report April-June operating profit of 7.8 trillion won (USD6.8 billion), the highest since an 8.5 trillion won profit in January-March of 2014.

The mobile division of the world's top maker of smartphones and memory chips was likely its top earner for the second straight quarter with a 4.3 trillion won profit, according to the survey. Samsung surprised many with better-than-expected first-quarter earnings, and issued guidance for a further pickup in April-June. [nL3N17U63E]

"Galaxy S7 sales are better than expected in the first half, and the semiconductor business is also outperforming rivals," said KTB Asset Management's Lee Jin-woo. The fund manager estimated the firm's quarterly operating profit would also stay strong in both the third and fourth quarters at between 7 trillion won and 8 trillion won in each.

Samsung's smartphone business had been squeezed before the start of this year between Apple Inc , at the high end of the market, and Chinese rivals like Huawei Technologies in the budget segment. But the Galaxy S7 has provided a catalyst for the earnings rebound, likely putting the mobile business on track to record its first annual profit growth in three years.

Some analysts say Samsung shipped around 16 million Galaxy S7s in April-June, with a higher-priced curved-screen version outselling its flat-screen counterpart and boosting margins. Lacklustre sales of offerings from rivals such as Apple and LG Electronics also helped reduced marketing expenses, they said.

"While operating profit margins for the mobile phone business will decline in the third and fourth quarters as the Galaxy S7 effect fades, operating profit will continue to grow on an annual basis," Korea Investment & Securities said in a report.

As its smartphones thrive, Samsung's chip business - last year's key profit driver - probably saw quarterly profit sink to its lowest in nearly two years due to weak demand from makers of other smartphones and personal computers.

But signs of some price recovery for DRAM chips starting last month and Samsung's dominance in the premium solid-state disc drive market with its 3D NAND chip production technology suggest a pickup in coming months, analysts said.

Source: Samsung set for best quarter in over 2yrs on Q2 smartphone boost

Comments

Samsung is building a revolutionary ROLL-UP smartphone

GETTY • US PATENT OFFICE Example of a flexible display, LEFT, and the illustrations filed with the Samsung patent, RIGHT Samsung has been awarded a US patent for a brand-new foldable, rollable display to use across its smartphone and tablet ranges. The South Korean technology firm recently used its flexible display technology in the award-winning Galaxy S6 Edge, which has a dual curved QHD screen. However this latest patent, which was published by the United States Patent and Trademark Office, shows the company has bolder ambitions for its curved displays. The illustrations filed with the approved patent reveal a cylindrical hub, which houses the rolled display – which unfurls like a pair of window blinds. US PATENT OFFICE The US patent contains a futuristic cylindrical smartphone with a roll-up display Users then pull a tab at the end of the multitouch display to unroll it from the hub and use the full screen real estate available on the tablet or smartphone. To achiev

The Samsung Galaxy Note7 (S820) Review

This year has been difficult for smartphones, which is a bit of a paradox when you consider just how much better things have gotten compared to last year. With Snapdragon 820, 650, 652, and 625 we've finally moved past the shadow of the Snapdragon 810, 808, and 617/615. While there were Android devices that shipped with the Exynos 7420, they were often paired with a modem that was not necessarily the most power efficient. Despite all of this, there seems to be a general disappointment with smartphones. People are increasingly finding it hard to justify phones like the HTC 10 or Galaxy S7 with competition from OnePlus, Xiaomi, and even Apple with their iPhone SE. In this context the Galaxy Note7 brings much of the flavor of the Galaxy S7 edge, but blends it with the S-Pen of the Note line and a few new features like the iris scanner. If you were paying attention to the industry with the launch of the Galaxy S6 and Galaxy Note5, it's very much more of the same rather than the m

HTC 10 vs Samsung Galaxy S7 / Edge vs LG G5

In the Android world, we follow a familiar release cycle when it comes to flagship smartphones, mostly centered around the two major trade shows, MWC and IFA. This year, Samsung and LG were first out of the gate with their respective flagship offerings being showcased back during MWC 2016, and while HTC was a little late to the party, we now have all three high-end offerings to choose from. Each device brings something unique to the table to help distinguish themselves from the other, and we've covered them extensively here at Android Authority with comprehensive reviews, in-depth comparisons, and feature focus articles. Which is the best of the lot? That is what we aim to find out, as we take a closer look at the HTC 10 vs Samsung Galaxy S7 / Galaxy S7 Edge vs LG G5 in this unique triple-threat versus! Design In design, we start with the LG G5, given its complete departure from the norm with regards to design and build quality. The G5 now features a full-metal

Samsung Android Phones

Search This Blog