The company does mention in the earnings release that the handset division’s fortunes improved quarter-over-quarter due to strong sales of the Galaxy S7 and Galaxy S7 edge. It improved its overall product mix by raising sales proportion of the Galaxy S7 edge to over 50 percent. The company also attributed growth in the second quarter to maintaining profitability of mid to low-end models like the Galaxy A and J series. Samsung forecasts demand for smartphones to increase in the second half of this year but recognizes that market competition is going to get tougher as other companies come out with new devices. The upcoming iPhone is expected to arrive in September and it will directly compete with Samsung’s flagship handsets. Despite the threat of increased competition, Samsung is going to focus on increasing earnings year-over-year by strengthening its high-end lineup and maintaining robust profitability of mid to low-end devices.
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