Published in Mobiles

Melting smartphones didn’t stop Samsung

by on06 January 2017

Profit leapt by 50 percent

Samsung’s bottom line was not really harmed by the Note 7 fiasco and the outfit saw its fourth-quarter profit leap 50 percent from a year earlier to its highest level in more than three years.

The announcement beats expectations and is thanks to strong chip sales and, ironically, a smartphone rebound.

Samsung did take a $2.1 billion profit hit from the withdrawal of the fire-prone Galaxy Note 7 premium smartphone in October. But that was not enough to stop Samsung.

The guidance points to a more rapid recovery for the mobile business than many analysts had anticipated after one of the biggest product safety failures in tech history, and reflects steady price increases for memory chips.

Analysts also have high hopes for the Galaxy S8 and if it does well then Samsung will report record earnings this year.

Samsung said that its October-December operating profit was $7.8 billion which was the highest since the third quarter of 2013.

Last modified on 06 January 2017
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