Samsung's Galaxy S7 drives second-quarter profit

PanARMENIAN.Net - Samsung Electronics expects to post its most profitable quarter in more than two years because of strong sales of its flagship S7 line of smartphones, BBC News reports.

The South Korean company estimates operating profit will rise 17.4% from a year earlier to 8.1tn won ($7bn) for the April to June period.

That's higher than median analyst forecasts and indicates that business may be turning around.

The firm has been struggling with shrinking profits and market share. The global smartphone market has seen growth slow as users rein back on spending and replace or buy new devices.

Chinese companies like Lenovo, Xiaomi and Oppo have also released cheaper handsets that have eaten into the profit margins of more established players like Apple, which posted its first quarterly revenue decline in 13 years in April.

Shares of Samsung rose by 1.3% in Seoul following the announcement. The final earnings results will be released at the end of the month.