Samsung today announced its second quarter earning guidance in which it posted an operating profit of 8.1 trillion won (US$7 billion) on sales totalling 50 trillion won. The company’s mobile division, which makes up a huge chunk of its total earnings, is expected to net a profit of 4 trillion won — the company’s highest quarterly profit in two years.
Impressively, compared to the previous quarter, Samsung is expecting only a 4% increase in total sales but a staggering 21% increase in profits.
This is all thanks to the Korean company’s latest flagship handsets: the Galaxy S7 and Galaxy S7 edge. The handsets might seem to offer minimal improvements over their predecessors at first glance, but they offer huge improvements in key areas. This includes better battery life, improved low-light camera performance, the return of a microSD card slot, and an IP68 certification.
According to analysts, Samsung is estimated to sell around 26 million units of the Galaxy S7 globally since its launch. Apart from the handset itself being very compelling, Samsung’s very aggressive marketing campaign and promotions like bundling free Gear VR has also helped play a key role in improving the sales of the handset.
While the numbers posted by Samsung are estimates, the company has usually been right on spot with its estimates.