Samsung has reported its earnings for Q2 2016, in which the company has made operating profit of 8.14 trillion won ($7.22 billion) for the quarter that ended June 30, 2016, which is up 16% YoY. It reported revenues of 50.94 trillion won ($45.2 billion), up 5% year-on-year and net profit of 5.85 trillion won (US$ 5.17 billion), compared with 5.75 trillion won a year earlier. This is the company’s most profitable quarter in two years, as expected.
Samsung beat forecasts even as growth in the overall smartphone industry slowed. Earlier this week Apple reported in its earnings that iPhone sales continue to fall.
IM sector that includes Mobile Communications and Networks Businesses posted 26.56 trillion won consolidated revenue and 4.32 trillion won ($3.82 billion) operating profit for the quarter, up 56% compared to 2.76 trillion won in the same quarter last year.
Increase in earnings QoQ/YoY is due to strong sales of its flagship Galaxy S7 and S7 edge smartphones globally, which continues to increase. Samsung said that it has maintained profitability of mid- to low-end models, such as the Galaxy A and J series, and has improved product mix by raising the sales proportion of the Galaxy S7 edge to over 50% in the quarter.
In Q3 2016 it will be expanding smartphone sales including this year’s new Galaxy A and J series and the Galaxy C series that was introduced exclusively for China. It said that it will release new large-screen flagship smartphone, which is the Galaxy Note7 that will be unveiled on August 2nd.