Samsung Electronics has announced operating profits of KRW8.14 trillion (US$7.24 billion) for the second quarter of 2016, up 21.9% on quarter and 18% from a year earlier, while revenues increased 2.3% sequentially and 4.9% on year to KRW50.94 trillion.

"Samsung's earnings improved on quarter thanks to strong sales of its flagship Galaxy S7 and S7 edge smartphones," the company said. "Additionally the company achieved growth in the second quarter by maintaining the profitability of mid- to low-end models, such as the Galaxy A- and J-series, and improving the product mix by raising the sales proportion of the Galaxy S7 edge to over 50%."

Samsung's IT & mobile communications (IM) division generated operating profits of KRW4.32 trillion in the second quarter of 2016, rising 56.5% a year ago and 11.1% sequentially. The results were also the highest quarterly level since second-quarter 2014. Revenues generated from the business grew 1.9% on year to KRW26.56 trillion in the second quarter.

Samsung expects the release of a new large-screen flagship smartphone to help maintain solid sales of high-end smartphones led by the Galaxy S7 and S7 edge in the third quarter of 2016. The company will also focus on expanding smartphone sales including this year's new Galaxy A- and J-series and the debut of the Galaxy C-series exclusively for the China market.

Samsung's component business achieved solid performance in the second quarter of 2016 although overall earnings decreased on year due to ASP declines in the industry, the company said.

Samsung's semiconductor business posted net profits of KRW2.64 trillion in the second quarter of 2016, down 22% on year. The company expects improved demand and supply conditions for memory chips in the third quarter.

In addition, Samsung estimated that the stronger Korean won against major currencies in the second quarter negatively impacted operating profits by approximately KRW0.3 trillion, which affected mainly its component business earnings.

Samsung's overall capex budget for 2016 will be slightly higher than the 2015 level, the company said, without giving numbers. The capex will be "concentrated on OLED and V-NAND capacity as the company sees strong market demand for OLED panels for smartphones and V-NAND SSD."