Samsung’s Q2 2016 earnings surge on Galaxy S7 and S7 Edge sales

Samsung has declared that their operating profit in the second quarter of 2016 has risen over 17 percent from the same period, a year ago. This rise beats expectations of all the analysts. Six months before the company recorded their best figures in two years, it had warned that 2016 could be a difficult year.

The South Korean company’s flagship Galaxy S7 has been pivotal in this financial recovery. Despite immense pressure from competitors like Apple, the company has done well.

Samsung’s lower end phones have also had steady figures this year, thus bolstering the success. According to predictions made by analysts, their success in the rest of the year will depend on the success of their smaller products such as memory cards and screen technology.

According to a report by Shinhan Investment Corporation, a securities brokerage, a potential decline in the sales of smartphone in the third quarter could be “offset by improving earnings of the semiconductor division and Samsung Display.”

Samsung’s new screen technology uses organic light-emitting diodes or OLEDs. Samsung uses the technology to create thinner and more flexible screens. It gives its Galaxy S7 Edge phones the curved edges that they are famous for.

Lately, Samsung has lost important ground to Apple in Asian markets, owing to the American company’s surprisingly aggressive approach. However, the new OLED screens have been paying off for them and are expected to take them out of this perplexing situation.

As the rumor mills have been feeding the tech-world, the screen technology could be the key to Samsung’s much awaited foldable screen phones. Various other companies, especially Apple, are expected to adopt this technology, according to Morgan Stanley analysts.

As we approach the last two, and perhaps the most important quarters of the year, it has become amply evident that the year end shall not bear good news for the ones battling over mere specs. New technology is the key.

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