South Korean tech giant Samsung Electronics said on Thursday it expects solid earnings to continue in the second half of 2016, with stronger components demand likely offsetting heightened margin pressures for smartphones.
The world's No. 1 maker of smartphones and memory chips said mobile sales would likely remain buoyant in the third quarter but marketing costs would rise as rivals launch new models.
"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.
April-June profit rose 18% from a year earlier to 8.1 trillion won ($7.17 billion), the highest since the first quarter of 2014, Samsung said. The result was in line with the firm's earlier profit guidance.
Samsung's mobile division remained the top earner for the second straight quarter and was on track for its first annual profit gain in three years, thanks to strong Galaxy S7 handset sales and improved margins.