Samsung Electronics high-value products are one of the reasons that the company is reporting higher earnings for the second quarter of 2016. The Korean company has performed remarkably well despite the lowered demands from the world market.
Total revenue for the second quarter was reported to be more than $45 billion. First quarter revenues were more than $2 billion lower. Income from second quarter operations was approximately $7 billion, which is an improvement of around $1 billion from the first quarter, according to the Samsung Newsroom.
Mobile cellphone products such as the Galaxy 7 series and other cheaper models made substantial revenue contributions. The smartphone group reported income from operations at almost $4 billion. Other groups also reported higher revenues. Samsung sells a variety of products ranging from televisions, smartphones and various semiconductors.
Samsung Electronics officials are optimistic that the next two quarters will continue to result in an increase in revenue and profits. They expect that demand for their electronic products would stabilize in the third quarter. Samsung will also reportedly release its newest smartphone product anytime soon. The Galaxy Note phablet is expected to launch by August 2106 before Apple could even unleash their new iPhone products.
A number of Samsung investors, however, believed that the company's second quarter earnings will be the highest this year, according to Reuters. They are not optimistic that the revenues for the second half of 2016 will increase.
Industry observers pointed out that Samsung's chip making group reported less than $2.5 billion as income from its second quarter operations. This represents more than 20 percent decrease from the previous quarter. Samsung officials explained that the decreased demand for chips forced them to lower prices.
The Korean conglomerate also announced that it will buy back more than $10 billion of stocks. Dividends of around $.89 for every common stock are expected to be release.