S7 sales lift Samsung’s profit into the Galaxy

According to Samsung, the 17 percent increase in operating income in the second quarter has helped the company record the highest quarterly profit in over two years.

The numbers released on Thursday were preliminary; Samsung will post its final earnings later this month. The company intends to deliver 12,500 Galaxy S7 edge Olympic Games Limited Edition, together with Gear IconX to all Rio 2016 Olympians.

Samsung Electronics has upped its guidance and looks set to post its best quarterly profit result in two years.

“Samsung is the only smartphone maker that is faring well these days while competitors like Apple and LG are grappling with slowing demand and Chinese companies are not making profits”, Lee Seung-woo, an analyst at IBK Securities, told the Financial Times. Apparently, it’s going to be more visible than the front-facing LED that is found in Samsung’s smartphones.

In revenue, it expects 50 trillion won, a rise of 3.01 percent.

According to a regulatory filing, Samsung estimates operating profit for the second quarter to be about 8.1 trillion won, or about $7 billion, above analysts’ expectations of 7.8 trillion won. In comparison, Samsung’s key rival Apple has somewhat uncharacteristically resorted to promotions for some of its handsets, including the iPhone 6S.

Apple, which sold about 10 million fewer units in the quarter and had a 15 per cent market share.

Injong Rhee, of Samsung Electronics, speaks about Samsung Pay during the Samsung Galaxy Unpacked 2015 event August 13, 2015 in NY.

“Samsung’s business outlook seems extremely good and creates a lot of excitement now”, said Peter Yu, a Seoul-based analyst at BNP Paribas SA.

There were no breakdowns of sale figures or earnings estimates for the different business divisions within the company. OLED displays allow for curved and wrap-around screens. The users can also download the Android Marshmallow 6.0.1 update on their phone’s network but in doing so, they would incur very high data charges, so it is not recommended.

Continued price declines of LCD panels also propelled sales of televisions. Three months earlier, the analysts’ consensus was as low as 5.86 trillion won for operating profit.