Samsung Posts Highest Profits in Over Two Years Thanks to the Galaxy S7 and S7 Edge

Harish Jonnalagadda, reporting for Android Central:

Strong sales of the Galaxy S7 and S7 edge have led to Samsung posting an operating profit of $7.22 billion (8.14 trillion won) in Q2 2016, up 18% from the same period a year ago. Overall revenue was $45.1 billion (50.94 trillion won), a 5% increase from Q2 2015.

The handset business accounted for half of Samsung’s bottom line, with the division netting $3.83 billion (4.32 trillion won) in profit on a revenue of $23.5 billion (26.56 trillion won). Samsung noted that the larger and more expensive S7 edge model made up over half of the sales of its flagship series, with the Galaxy A series and J series also seeing an uptick in sales in the mid-range and low-end segments.

Those numbers for revenue and profit are remarkably similar to Apple’s for the same quarter ($42.4 billion in revenue, $7.8 billion in profit). Android isn’t making money for handset makers in general, but it is for Samsung.

Update: I took the numbers from Android Central at face value, but should not have. “Operating profit” is not the value to compare, net profit is. Samsung’s net profit for the quarter was $5.2 billion.

Thursday, 28 July 2016