Published Date : Jul 08, 2016
Samsung Technology has announced that with the introduction of new phones and new technology, the company has registered an increase in its operating profit in the quarter ending in June. The South Korea-based technology firm has witnessed a rise in its operating profit by 17% compared to the same period a year ago. The rise in the profit beats the expectations of industry analysts and has been the best quarterly profit figure of the company in the past two years. The recovery of the company’s profit books can be attributed to the growing popularity of the S7 phone that has registered decent sales in spite of facing stiff competition from Apple’s iPhone. The company has also registered steady sales of smartphones in the low-end categories.
Samsung would focus more on Screen Technology and Memory Components in Q3
According to industry experts, if Samsung has been able to survive the difficult conditions in the global smartphone market through the first half of 2016, the company is anticipated to rely more on its lesser-known products such as screen technology and memory components. There might be a slump in the sales of smartphones in the third quarter due to the company’s improved earnings in the semiconductor division. In the second quarter of 2016, Samsung’s operating profit is expected to be around US$7 bn. The numbers released so far are preliminary and the final earnings will be posted later this month by the company.
The new screen technology of Samsung utilizes organic light emitting diodes, better known as Oledss. The company has started to integrate this technology in its smartphones and has enjoyed production advantage. This technology is able to create thinner and more flexible screens and hence, the Galaxy S7 Edge phones have curved edges.