Beijing time on July 5, according to Reuters reports, the flagship intelligent machines Galaxy S7 driven by strong sales of mobile business profits soared in the second quarter results to guide upcoming Samsung Electronics is expected to hit the best level in more than two years. Samsung on Thursday released second-quarter guidance results. Analysts expect the strong performance of the mobile sector will drive Samsung's second-quarter operating profit rose 13%.
Accept the Thomson Reuters survey of 16 analysts on average expect Samsung second quarter operating profit will reach 7.8 trillion won (US $ 6.8 billion), the highest level since the first quarter of 2014, operating profit of 8.5 trillion won . Survey shows that the second quarter of Samsung's mobile division operating profit will reach 4.3 trillion won, the second consecutive quarter to become the largest contribution to profit sector. Samsung's first-quarter operating profit exceeded expectations, and the second-quarter operating profit is expected to grow further, which made a lot of people by surprise.
"Galaxy S7 sales in the first half was better than expected, the performance of Samsung's semiconductor business better than competitors," KTB Asset Management analyst Lee Jin-woo representation. KTB expects Samsung's third-quarter and fourth-quarter operating profit will remain strong, at 7 trillion won, respectively, to between 8 trillion won.
Prior to this year, Samsung smartphone business in the high-end market, low-end market has been Apple, respectively, Huawei and other Chinese rivals squeeze. However, Galaxy S7 has become the catalyst for Samsung Mobile profits rebound, the phone is expected to promote Samsung's mobile business to achieve the first three years of profit growth.
Some analysts expect Samsung's Galaxy S7 second quarter shipments of about 16 million, higher sales of higher priced models surface, which improved profitability. Apple, LG Electronics and other competitors weak sales of mobile phones, which also helps Samsung reduce marketing expenses.
"With the Galaxy S7 effect faded, Samsung's operating margin in the third quarter and fourth quarter will decline, but operating profit will continue to grow year on year," Korea Investment & Securities said in a report.
Although the smart machine business rebounded, but Samsung's chip business quarter profit may be the highest in nearly two years to the lowest value, due to weak PC and other smart machines manufacturer needs. Chip business is the key driver of last year, Samsung profits. But analysts said that from the beginning of last month, DRAM memory chip prices there have been some signs of a rebound. Moreover, Samsung with 3D NAND chip production technology in high-end SSDs dominate the market. These are harbingers of Samsung's chip business will rebound in the coming months.