Strong Galaxy S7 sales push Samsung to biggest profits in over two years

Samsung Electronics has published its full second-quarter earnings, confirming earlier guidance that indicated the company's strongest profits in over two years. Revenue was 50.94 trillion won ($45.2 billion), up 5 percent on a year ago, while operating profit was 8.14 trillion won ($7.22 billion), up 18 percent.

Samsung's mobile division accounted for over half of that revenue and profit, with the company pointing to strong sales of its well-received flagship Galaxy S7 and S7 Edge phones that continued from the previous quarter. The larger, more expensive Edge phone made up over half of Galaxy S7 sales, improving profitability for the lineup, while Samsung also benefited from a streamlined mid-to-low-end product range.

Samsung says it expects to maintain solid sales through the third quarter with the launch of "a new large-screen flagship smartphone;" the Galaxy Note 7 will be announced on Tuesday.


Samsung Galaxy S7 and S7 Edge review

Comments

What’s the benefit of the curved edges on the S7 Edge? I don’t get why people find that useful.

it looks cool.

It looks okay.

It makes it look different than any other phone on the market. There is only so much you can do.

Form over function.

For me, larger battery, it looks cool, and a quick launcher (i.e. I don’t need to return to the home screen every time I want to launch let’s say my music app).

The curved edge allows for a larger battery?

In a smaller form factor.

The edge is a bigger phone, so the curved screen doesn’t give you better battery, the larger size of the Edge does.

Looks amazing, edge feeds are more useful than I would have guessed and the other edge features are also really nice, it’s great for scrolling through photos that you take (I have about 2000 photos that I’ve taken and have edited around 300 of them).

Probably the main thing that they do that I don’t think gets enough attention though is that they make the phone much narrower. When it was announced the edge would be 5.5" I was angry because other phones that size apart from the G3 and G4 were huge. This thing is barely wider than my flat S6 was while having a way bigger screen, so it’s not too much more of a hassle to carry or use. So from a usability standpoint, it’s definitely a win imo.

It looks great, small bezels, feels pretty good, and I do actually use that quick launcher a LOT.

Allows you to have a bigger screen in a smaller body. Look how much space the iPhone wastes with those bezels. It’s like taking edge to edge screens to a whole new level.

Those huge bezels serve a purpose of allowing you to comfortably hold and rest your fingers without triggering the touchscreen or without an unstable grip. There’s an actual function they serve.

I still wait for the day that Android fans stop trying to use the bezel as the latest spec as to why Androids are superior.

I don’t know how you hold your phone, but I never touch the glass part of my iPhone while holding it. I can’t understand how you don’t find frustrating the amount of unused space there is in the front of the phone. If Apple does not have the talent to make a smaller 4.7" phone, they should at least increase the screen size in the current models (as Samsung did with the S7). It’s pretty frustrating that SAMSUNG can build a phone that’s more similar in size to the iPhone 6s than to the Plus, while putting a screen thats 0.8" bigger and a 100% bigger battery.

I also use an iPhone, a Mac, an iPad and I own an Apple Watch, and I still wait for that day that Apple fanboys stop trying to use the "Android fan" argument to compensate for the iPhone’s shortcomings.

Because not everyone agrees with your must-not-have-bezels stance. Having to program software (imperfect solution) to detect palms? How about how whites turn grey/blue when the UI is displaying a white page or menu because of the angle of the curve and how the pixels align?

My comment about the bezels being a place to rest fingertips was meant when the phone is held in landscape mode. I also prefer not to be shown a big SAMSUNG logo above my screen either.

I changed my iPhone 6 for a Galaxy S7 edge. I’m so happy with my decision… (Although I bought an iPad mini because I like some iOS apps)

Sounds like a happy medium.

I’ve been doing the android phone ipad combo for years. Great solution if you’re open to using different OS.

That’s cool. I changed from Android to iOS and I haven’t looked back. Those Snowden leaks along with what seemed like weekly reports of Android vulnerabilities and lack of updates, and the overall disjointed UIs I would experience made me too happy to jump back to iOS. It was very fun customizing it when I was new to the platform though.

Makes sense, in Chicago most of the Android devices are the S7 now and of the iPhone users I know two switched to the S7 (both went with the Edge). The screen real estate saved from the lack of bezel is a huge selling feature for some.

Really hoping they keep putting this much attention into the camera going forward. Easily some of the best mobile photos I’ve taken since the Lumia 1020 (doubt we’ll see a xenon flash in a phone again).

sooo, let’s do some math…:

Samsung’s Mobile Division: $3.8 billion operating income (includes phones, tablets, wearables, networking)
All of Apple: $10.1 billion operating income, (57% of revenue is iPhones, 12% iPad). Let’s be generous and say 75% of Apple’s profit is in "mobile" = $7.5 billion

That’d be best case for Apple: 68% Apple/ 32% Samsung split on mobile operating income

Best case Samsung…If Samsung’s Tablet, Smartwatch and Networking products’ profit is negligible, you could argue $3.8 billion Samsung phone operating income vs. 57% of $10.1 billion (assuming equal margin across Apple division, but I bet Services is higher) = $5.7 billion iPhone operating income. Then we are at 60% Apple / 40% Samsung.

Anyone tells you Apple earns 94% of the world’s mobile profit – they’re smokin’ crack.

The people who come up with those numbers are using some slightly creative accounting as they include all the handset manufacturers losing money into the equation, i.e. Apple could be earning 94% of the profits, Samsung 74%, Huawei -25% etc etc until you get to 100%. It kinda makes sense but is deceptive

Also for Apple adding the services revenue to the equation is dishonest. I mean you’d have to add Google’s revenues from Android.

Apple revenue decreases, and Samsung’s increases. I don’t know if it’s coincidental but Samsung sure does deserve it. They seem to be putting the best mobile devices out for over a year now. S7/S7 edge are the best phones on the market, Note 5 is the best phablet, and I would even say that the Galaxy Gear s2 is the most fluid (UI & UX wise) and elegant smartwatch on the market. They’re beginning to click on all cylinders.

You’re telling half the story there. Samsung’s profits were actually dropping for almost two years (thus the headline). They might be "recovering," but that requires some context; it’s not to say that the GS7 is giving them GS4 level success.

"Samsung predicts seventh straight profit drop despite Galaxy S6 launch" [6/6/2015]

"Samsung will focus on better mobile software and futuristic displays after tough quarter" [1/27/2016]

Samsung is once again the world’s biggest smartphone vendor, but its profits haven’t recovered [4/29/2015]

Samsung predicts 30 percent drop in profit [4/6/2015]

Samsung’s profits continue to slip [1/28/2015]

Samsung will ‘fundamentally reform’ its smartphones after dire earnings report [10/30/2015]

Samsung sales and profits down despite Galaxy S5 launch [6/30/2014]

etc.

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