• X
  • Listen in to our latest podcast!

    October 7, 2016

    Despite exploding Note 7s and an international recall, Samsung’s earnings soar

    Samsung's earnings soar despite Galaxy Note 7 controversy

    Samsung has announced it expects a 5.6% operating profit growth for the third quarter, despite having to field a $1.8 billion USD Galaxy Note 7 recall.

    Say what you will – Samsung hasn’t had it easy these past few months between damaging early reports of Galaxy Note 7 handsets exploding, and later having to issue a full-blown international recall.

    Despite that, the company’s profits continue to soar – the firm has announced that it expects a 5.6% operating profit growth for the third quarter of 2016, while its profit will likely reach 7.8 trillion won – that’s up some 400 billion won from the same period last year, and 400 billion won more than analysts had predicted.

    Read: Microsoft posts revenue of $20.6 billion USD in its fourth quarter

    While the company’s mobile division has experienced a knock thanks to temperamental Note 7s, its chip and display division has succeeded – reportedly, those two divisions might even be this quarter’s top earner, scoring Samsung nearly half of its income.

    Samsung remains one of the world’s foremost manufacturers of computer chips, and the expansion of its OLED display business has help the company through one of its most controversial periods.

    Things do look dire for Samsung’s mobile business; the division has plunged to its lowest level within the past three-quarters following on from the company’s decision to launch an international Note 7 recall, and has seen the chaebol’s sales dip by five percent from 2016.

    However, it is predicted that Samsung’s profit will only continue to grow in the coming quarters, where the company’s chip and display divisions will once again fuel profits.

    Read: Apple earnings decline for the first time since 2003

    What are your thoughts on Samsung’s quarterly earnings? Can anything stop the Korean giant if the threat of an exploding handset can’t? Be sure to let us know your thoughts in the comments below!

    Follow Bryan Smith on Twitter: @bryansmithSA

    Source: Engadget

    Listen in to our latest podcast!