Samsung Posted Biggest Profit Leap in Three Years, Despite Galaxy Note 7

Tyrone Stewart

samsungSamsung has reported KRW 53.33 trillion (£367.33m) and KRW 9.22 trillion in operating profit for Q4 2017 – as it posted its biggest profit jump in three years, up 50 per cent year-on-year YoY, despite the Galaxy Note 7 fiasco.

During the quarter, mobile registered gains YoY due to ‘solid sales of flagship products such as Galaxy S7/S7 edge and improved profitability of mid-to-low end models’. IT and mobile communications reportedly made KRW 23.63 trillion in consolidated revenue and KRW 2.5 trillion in operating profit.

Looking ahead to 2017, the tech giant forecasts slow growth in smartphone demand – expecting new services, such as AI, to be differentiating factors in the industry during the year. It says it will continue to innovate both in software and hardware, while seeking to ‘strengthen its leadership in the premium market and boost competitiveness of mid-to-low end smartphones’.

Elsewhere, semiconductors grew to KRW 4.95 trillion in operating profits and KRW 14.86 trillion consolidated revenue. Display also grew, managing KRW 1.34 trillion operating profit and KRW 7.42 trillion consolidated revenue, while consumer electronics registered a decline to KRW 0.32 trillion operating profit on KRW 13.64 trillion consolidated revenue.

In a press release, Samsung said: “For 2016, Samsung achieved solid results despite the Note 7 discontinuation in the second half as a result of continuous efforts during past two to three years to strengthen its component business competitiveness by focusing on value-added products and widening the technology gap in the DRAM business as well as strategic investments in V-NAND and OLED. The company also made several key acquisitions and divestures which will enable the future growth.”

Overall, the company reported  revenue of KRW 201.87 trillion across 2016, with an operating profit of KRW 29.24 trillion.

The South Korean multinational recently revealed – following a thorough investigation – that the Galaxy Note 7 incidents were caused by the phones' batteries.