Samsung’s Q2 earnings report show that the company enjoyed its most profitable quarter in two years, building on the progress it made in the first quarter of the year. Year-on-year revenue was up 5% at 50.94T won ($45.2B), with profit up 18% to 8.14T won ($7.2B). The company credited strong sales of its flagship Galaxy S7 and S7 edge for the turnaround, with the edge model accounting for more than half of S7 sales.

The company believes the launch of the Galaxy Note 7 will help it maintain momentum into Q3, saying that it expects total smartphone sales to increase, though it does acknowledge that it won’t all be smooth sailing, with a veiled reference to Apple’s new iPhone launch this September …

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Looking into the third quarter, the release of a new large-screen flagship smartphone will help to maintain solid sales of high-end smartphones led by the Galaxy S7 and S7 edge […]

Demand for smartphones and tablets in the second half is forecast to increase, however, market competition is expected to strengthen as other companies release new mobile devices.

Samsung has increasingly found itself competing with both Apple and with Chinese brands like Huawei and Oppo moving into the premium end of the market. While Samsung focuses on strong S7 sales, its Q2 profitability was in part due to the cost-cutting measures the company has undertaken in response to an increasingly competitive environment.

Samsung does, however, remain the market leader, with a market share of around 23-24% (depending on whose figures you believe), around twice that of rival Apple.

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