SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung expected to report biggest profits in three years even after Galaxy Note 7’s recall

Business
By 

Last updated: January 9th, 2017 at 15:25 UTC+02:00

Samsung saw some grim times after the launch of the Galaxy Note 7 and its subsequent recall, and analysts expected that the company would take a $17 billion hit due to the debacle of its flagship smartphone. However, Samsung has just surprised everyone by announcing that it is expecting a massive increase in its year-on-year operating profit for Q4 2016.

According to Samsung’s earnings forecast for October to December 2016, the company’s operating income was 9.2 trillion won ($7.8 billion), which is 50 percent larger than its operating income for the same period in 2015. It is also the company’s highest ever operating income after Q3 2013. This increase is mainly due to strong sales of its OLED screen panels and chipsets.

Bloomberg is reporting that a huge demand for memory chips for lower-end smartphones in China led to increasing prices, something that Samsung capitalized on. Analysts expect that the company’s chip business was responsible for 4.5 trillion won ($3.8 billion) of its operating income for Q4 2016. Moreover, weak Korean won is also said to be a factor for Samsung’s boosted income as the company only deals in US dollars for its component sales.

Even after the shocking recall of its flagship smartphone, the Galaxy Note 7, the company’s smartphone business is doing very well. The company introduced some special color variants of the Galaxy S7 edge, its current flagship smartphone, along with some decent mid-range smartphones in countries like China and India to keep the sales going. Samsung will announce final numbers for Q4 2016 by the end of this month.

Samsung Share Prices 2017

Source Business EarningsGalaxy Note 7Galaxy Note 7 recall
Load 0 comments

You might also like

Despite slowing smartphone sales, Samsung achieves its best ever Q2 profit since 2018

After revealing its earnings guidance a few days ago, Samsung announced its earnings for Q2 2022 earlier today. The company said that its revenue was KRW 77.2 trillion (around $59.1 billion), its best ever for second-quarter figures. The South Korean firm’s revenue was a 21% improvement compared to Q2 2021. The company’s Q2 2022 profit […]

  • By Asif Iqbal Shaik
  • 2 weeks ago

Samsung could achieve its best Q2 profit in four years as chip business improves

Samsung Electronics is estimated to reach its best Q2 profit in four years. The South Korean firm has estimated its operating profit to stand at KRW 14 trillion (around $11 billion) for the April 2022 – June 2022 period. The profit is up by 11.38% compared to last year, according to the survey by Yonhap Infomax, […]

  • By Sagar Naresh
  • 1 month ago

Samsung’s Q1 2022 profit jumps 51%, thanks to strong chip and smartphone sales

Earlier this month, Samsung had posted its revenue estimates for Q1 2022. Today, the company published actual earnings for the first quarter of the year, and the results have been nothing short of amazing. The company’s revenue rose 18%, while the operating profit jumped 51% compared to Q1 2021. Samsung revealed that its revenue during […]

  • By Asif Iqbal Shaik
  • 3 months ago

Samsung likely to post 50% higher operating profit for Q1 2022

Samsung announced its Q1 2022 earnings estimates earlier today. Thanks to solid gains through semiconductor chip and smartphone sales, the South Korean tech giant expects to post its highest Q1 earnings since 2018. In its earnings guidance, the company said that it expects its revenue to reach up to KRW 78 trillion (around $64 billion) […]

  • By Asif Iqbal Shaik
  • 4 months ago

Samsung SDI profit rises 14.6% as EV car sales increase worldwide

Earlier today, Samsung Electronics unveiled its Q4 2021 earnings. Now, Samsung SDI, the South Korean tech giant’s battery-making arm, has published its quarterly results. The company’s net profit increased by 14.6% compared to Q4 2020, thanks to solid electric vehicle sales across the world. Samsung SDI’s Q4 2021 sales increased to KRW 3.81 trillion (around […]

  • By Asif Iqbal Shaik
  • 7 months ago

Samsung’s Q4 2021 profit reaches four-year high, thanks to strong chip demand

A few days ago, Samsung had revealed its earnings estimates for the fourth quarter of 2021. Earlier today, the company published its final earnings report. Thanks to solid semiconductor chip sales and slightly higher smartphone sales, the South Korean firm’s operating profit reached a four-year Q4 high. Samsung Electronics‘ Q4 2021 revenue reached KRW 76.57 […]

  • By Asif Iqbal Shaik
  • 7 months ago