Just when smartphones were starting to look like dumb, commoditised devices in the tech industry’s search for a new growth star, Samsung Electronics has forecast its best quarterly results in more than two years, defying the sector’s slowing sales.

The South Korean company has estimated its operating profit for the June quarter at $7bn, the highest since the first quarter of 2014. It is the only smartphone maker still enjoying high margins, while Apple, LG Electronics and Chinese rivals struggle to cope with slowing demand.

Its strong guidance indicates the world’s largest smartphone maker has found a way to reverse its fortunes, after seeing profits and market share squeezed over the past two years by competition from Apple and Chinese competitors. Analysts estimate Samsung’s operating profit from the mobile division topped Won4tn ($3.5bn) in the second quarter, accounting for more than half of Samsung’s total operating profit.