thestar : Samsung earnings beat forecast on strong smartphone sales

Samsung earnings beat forecast on strong smartphone sales

SEOUL, KOREA, REPUBLIC OF—Samsung Electronics Co. reported forecast-beating earnings results Thursday that were its best in two years as consumers snapped up its Galaxy smartphones, in a sign the company is getting its mojo back while rivals fail to deliver new devices.The South Korean company forecast that its performance will continue to be "solid" during the rest of the year because demand for its lucrative components, such as high-end displays called OLED that are used as screens for premium smartphones, is expected to increase "substantially." It expects to spend more, however, on mobile marketing of its upcoming large-screen smartphones, to be announced next week, which Samsung typically uses to distract consumers from new iPhone launches by Apple.Samsung, the world's largest smartphone maker, said its April-to-June net income rose 2 per cent over a year earlier to 5.85 trillion won ($6.84 billion), compared with 5.75 trillion won a year earlier.

Worldwide smartphone sales stall in second quarter.

Smartphone sales came in flat for the second quarter globally, with Samsung holding onto the top spot and Chinese phone makers winning customers with mid-priced devices.International Data Corp.'s quarterly report on worldwide smartphone sales highlights how growth continues to shift from mature markets such as the U.S. to emerging regions such as India and the Middle East.And Chinese phone makers, which built their brands domestically so far, are expanding out to corral sales in these emerging regions — despite local competitors, said Ryan Reith, an IDC vice president of mobile markets.

Samsung profits boosted by smartphone sales

Image copyright SamsungStrong smartphone sales have helped Samsung Electronics post its best quarterly results in more than two years.Second-quarter operating profit jumped 18% to 8.1tn Korean won ($7.17bn; £5.46bn), in line with the company's guidance issued in July.Operating profit at its mobile division soared 57% year-on-year to 4.3tn won.