Samsung Reports Most Profitable Quarter in Two Years
July 27 2016 - 9:40PM
Dow Jones News
SEOUL—Samsung Electronics Co. reported its most profitable
quarter in two years Thursday, as strong sales of its flagship
Galaxy S7 smartphone helped offset a drop in profit on sales of
semiconductors and display panels.
Samsung said it earned 5.85 trillion Korean won ($5.2 billion)
in net profit during the April-June period, a gain of 1.7% from a
year earlier, while operating profit rose 18% from a year earlier
to 8.14 trillion won. Revenue rose 4.9% to 50.9 trillion won.
The strong quarter comes in contrast to that of Apple Inc.,
which reported a 27% drop in quarterly profit Tuesday, its second
consecutive quarter of falling revenues.
As Samsung has shown signs of stability in its core smartphone
business, investors have rewarded it by pushing its stock up to its
highest levels in more than three years, within a hair's breadth of
a record high.
Samsung's mobile division earned 4.32 trillion won in operating
profit, up 56% from a year earlier.
Research firm Canalys estimates Samsung shipped about 80 million
handsets in the second quarter, accounting for about 24% of the
overall market, while Apple shipped roughly 40 million iPhones for
a 12% share. China's Huawei Technologies Co. came third, with 31
million units shipped for a 9% market share.
Huawei said Tuesday it shipped about 60.6 million smartphones in
the first half of the year, up 25% from a year earlier, and was on
pace to hit its target of 140 million smartphones for the full
year.
Write to Jonathan Cheng at jonathan.cheng@wsj.com
(END) Dow Jones Newswires
July 27, 2016 21:25 ET (01:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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