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Samsung expects demand for mobile phones to increase 15 percent in the second half of this year driven by consumers upgrading to smartphones, it said in the release.

Shin Jong-kyun, president of the company’s mobile communications business, has said previously that the company’s sales target for mobile phones this year is 300 million handsets. Out of that total, the company expects 60 million to be smartphones.

Shares in Samsung, which announced results before South Korea’s stock market opened, rose 0.8 percent to close Friday at 844,000 won. The company’s stock price has declined 11 percent so far this year.