Samsung Electronics Vice Chairman Lee Jay-yong. (Photos: Samsung Electronics)

Samsung Electronics made an earnings surprise for the second quarter, with operating profit surpassing 8 trillion won for the first time in two years. 

An electronic disclosure made by Samsung Electronics on July 7 showed that the electronics giant chalked up 50 trillion won in sales and 8.1 trillion won in operating profit based on consolidated financial statements in the second quarter of 2016. Samsung Electronics saw its 2nd quarter operating profit surge 17.4 percent, over 6.9 trillion won, in the same period of last year and jump 21.3 percent, over 8.49 trillion won, in the previous quarter. 

The company recovered its quarterly operating profit to a range of 8 trillion won in a little more than two years, exactly in nine quarters since the first quarter of 2014 when it logged 8.49 trillion won in operating profit. 

Specific figures were not disclosed for each business, but market consensus shows that the IT and mobile (IM) business division, including smartphones, logged an estimated 4.4 trillion won, accounting for almost half of its total amounts in operating profit. Next came the semiconductor business division, which earned an estimated 2.5 trillion won, the consumer electronics business division, which raked in 1 trillion, and the display business division, which chalked up an estimated 200 billion won in operating profit. 

The IM business division saw its operation profit get back to a range of 4 trillion won for the first time since the second quarter of 2014. The CE business division also saw its operating profit surpass 1 trillion won in the second quarter, particularly thanks to an explosive worldwide sale of LED TVs, an achievement that division officials find it hard to beat. 

The earnings surprise is owed to Samsung Electronics’ superb technology products like the world’s sole “Edge” smartphones, 3D NAND flash memories, and cadmium-free Quantum dot SUHD TV. Samsung Electronics has sold 26 million units of Galaxy S7 since its release last March. The selling of Galaxy S7 has declined in the saturated global smartphone market, but Galaxy S7 Edge has hit a sensation, boosting the average selling unit price. 

Galaxy S7 Edge has a curved display screen, which makes it more appealing compared to its rivals’ products. 

Samsung made an earnings surprise for the 2nd quarter of this year with operating profit turning around to a range of 8 trillion won for the first time in two years. 

Samsung Electronics’ Boosts Sales of Energy Efficient Electronics 

Samsung Electronics has been selling electronics devices with “1st grade energy consumption efficiency” labels through July in accordance with the government’s decision to provide rebates for consumers. 

In June, the government said it will provide consumers with a rebate of up to 200,000 won, or 10 percent of the purchase price, for the purchase of electronic devices with 1st grade energy consumption efficiency labels for three months starting July 1. 

Samsung Electronics has 138 electronic devices that can benefit from the government’s policy. They include “No Wind” air-conditioner Q9500; smart air-conditioner Q9000; 20 refrigerators, including a “Chef Collection” refrigerator; three “Zipel Food Showcase” models; all kimchj refrigerator models; an air purifier model; and 33 TV models with a size of less than 40 inches. 

On top of the government rebate, Samsung Electronics provides further savings of up to 200,000 won for those who buy the “No Wind” Air-conditioner Q9500 or Smart Air-conditioner Q9000. Customers who purchase both the No Wind Q9500 and a dehumidifier with a first-grade energy consumption efficiency label will receive an additional benefit worth up to 200,000 won.

Those who buy a refrigerator and qualify for the refund can return their old one for an additional 200,000 milege points, while customers who purchase a fridge that qualifies for the refund, in addition to an energy efficient air conditioner or a washing machine are given an additional 100,000 millage points.