New technology and new smartphones are paying off for Samsung and, just six months after it warned about earnings in 2016, the company’s latest earnings guidance shows the Korean tech giant is hurtling towards its best profit in two years.
Samsung has reported that its second quarter operating profit is projected to rise 17.4pc on last year.
This is its highest growth in more than two years and is believed to be driven by strong sales of Galaxy S7 smartphones.
Samsung reported that its April-June quarter profit was heading towards $7bn (8.1 trillion won), ahead of analyst expectations.
The last time Samsung reported such a profit was in the first quarter of 2014 when it reported $7.3bn (8.5 trillion won) in profits.
Samsung shares were up 1.7pc on the earnings guidance.
Samsung is taking the fight to the clouds
As well as staving off competition from Apple, Samsung has been preparing itself to take on Apple in a range of industry sectors, including cloud and internet of things (IoT).
Samsung recently acquired cloud player Joyent for an undisclosed sum. Joyent competes with Amazon Web Services, Google and Microsoft’s Azure platforms and could bolster Samsung’s smartphone offerings against Apple’s rival iCloud service.
This was Samsung’s third major acquisition in recent years. It acquired IoT player SmartThings for $250m and mobile payment technologies firm LoopPay for around $160m, which is the basis for Samsung Pay.
Samsung image via Shutterstock