Samsung’s Q4 profits may be unaffected by Galaxy Note 7 recall
The Galaxy Note 7 has undoubtedly hurt Samsung, but their fourth-quarter profits may be safe and actually have seen some growth. According to the Korea Times, both IBK Securities and HMC Investing Securities have estimated that Samsung’s operating profit will reach 8.7 trillion won in the recent quarter.
Other firms, such as Kium Securities and Hyundai Securities had roughly lower estimated profit at 8.5 trillion won, which is higher than the 5.2 trillion won in the third-quarter. Despite the unprecedented recall, which cost Samsung trillions of won and potentially consumer trust, it seems like the tech giant might be saved by their semiconductor business according to Nomura Securities senior analyst Chung Chang-won.
“Samsung Electronics’ semiconductor division hit the jackpot in the fourth quarter and so did the display division. Consumer electronics also fared quite well. Three pillars would buttress Samsung’s fourth-quarter profit and in case the mobile business gets back on track next year by dealing with the aftermath of the Note 7 fiasco, Samsung is likely to chalk up a record annual profit larger than the 40 trillion won in 2017,” said Chung Chang-won.
As with all predictions, take it with a grain of salt, especially since Samsung is yet to officially release fourth-quarter financial results.