Flagship Galaxy S8 smartphone helps drive numbers but manufacturer warns of decline in Q3
Samsung’s mobile sales increased by 10.8 per cent in Q2 to KRW28.92 trillion (£19.76 billion), thanks to increased popularity of the Galaxy S8.
Sales within the manufacturer’s IT and mobile division were also up year-on-year in the quarter from KRW26.56 trillion (£18.4 billion) to KRW30.01 trillion (£20.5 billion).
However, operating profit in this business segment was down to KRW4.06 trillion (£2.77 billion) from KRW4.32 trillion (£2.95 billion).
Samsung said revenue “increased significantly driven by increased global sales of the S8 while shipments of mid to low-end smartphones declines”.
Earnings remained strong due to increased LTE equipment sales to major overseas customers.
Looking ahead for the second half of the calendar year, Samsung forecasts maintaining strong sales of flagship products through the release of the Note model over the coming weeks and continuous global sales of the S8 and S8+.
However, it warned that earnings are likely to decline in Q 3from the same period last year due to “increased marketing costs with the launch of the new Note product, and reduced new launch effect of S8”.
The new Note phablet is set to be unveiled by the manufacturer at its next Unpacked event, which takes place in New York on August 23.
Overall, Samsung’s sales were up year-on-year in Q2 from KRW50.94 trillion (£34.8 billion) to KRW61 trillion (£41.7 billion), while operating profit surged from KRW8.14 trillion to KRW14.07 trillion.