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Samsung soars with $7bln dollar earnings

Thursday, July 28, 2016 - 01:44

Samsung posts its best profits in over two years, powered by sales of its flagship smartphones the Galaxy S7 and S7 Edge. Ryan Brooks reports.

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South Korean tech giant Samsung unveiling its best earnings in more than two years on Tuesday pocketing more than 7 billion dollars in the second quarter. A welcome bounce-back after it took a beating from rivals Apple and Huawei last year. The company's mobile division made up half of its April to June profits, up 18% from a year ago. As Reuters Vincent Lee explains, sales of the flagship Galaxy phones are driving up earnings. (SOUNDBITE) (English) VINCENT LEE, REUTERS, SAYING: "The... S7 was a big success, they made improvements on what they missed with the S6, including that they just couldn't make enough of the... curved edge screen models to keep up with demand, that's been addressed this year and that's basically what's driving the earnings. They have revamped their mid-to-low tier products so that the phones like the Galaxy A and J series are selling much better and they are getting much better margins out of that. So that is basically contributing to the big jump." It's a strong showing from the world's largest smartphone maker, and it comes at a convenient time... With Apple struggling to boost iPhone sales in key Asian markets including China. Analysts say the next iPhone - set for launch in September - may not have many new features, potentially clearing the way for more Galaxy sales. Samsung's budget phones are seeing healthy sales in emerging markets like India, shrugging off value brands like China's Xiaomi even if they beat Samsung on price. The company says it expects solid sales to continue into the second half of 2016, with strong demand for components like chips and display units. And it's also planning to roll out a new Galaxy Note phone-tablet hybrid earlier than usual this year, hoping to drum up hype and pick up the sales slack before the iPhone 7 hits the shelves.

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Samsung soars with $7bln dollar earnings

Thursday, July 28, 2016 - 01:44