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Samsung Q2 profit better than expected

Samsung has reported better than expected quarterly profit but warned earnings from phones will weaken in the rest of the year.

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Samsung Q2 profit better than expected

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South Korean technology giant Samsung just reported better than expected profit between April and June, up 18 percent from a year earlier to 8.1 trillion won (6.47 billion euros).

The world’s number one maker of smartphones and memory chips said earnings from phones were up by 57 percent but it expects them to weaken in the rest of the year.

It is counting on improved prices for memory chips and display panels to make up the difference.

“Looking ahead to the second half of 2016, the company expects its solid performance to continue compared to the first half, mainly driven by earnings increase in the component business,” Samsung said in a statement.

Samsung also plans to spend more on promoting its handsets, including the hugely successful flagship Galaxy S7 model, to counter increased competition from Chinese companies and from the expected introduction of new phones by its rival Apple.

The company is expected to unveil its new Galaxy Note smartphone next week and will likely start selling its phablet about a month before Apple launches its new iPhones in September.

Samsung supplies chips for Apple iPhones and said its earnings for that part of the business would improve with the roll-out of new gadgets in the months ahead.