Samsung Predicts Record Profits Despite Galaxy Note 7 Disaster
One of the biggest product safety scandals in history doesn’t seem to have had an immediate impact on Samsung’s fortunes
Samsung’s mobile division appears to have recovered in spectacular fashion from its Note 7 debacle after predicting the biggest fourth quarter profits in three years.
Despite being hailed as great innovators when the smartphone was first released, the positivity was quickly quashed after reports of exploding batteries signalled a mass recall and one of the biggest product safety scandals in history.
The fallout is still ongoing but Samsung has forecast a forth quarter profit rise of 50 percent compared to the previous year, thanks in part to increasing chip sales.
Strong profits
Operating profit for the period from October to December is predicted to be 9.2 trillion won ($7.8 billion or £6.3bn), the highest since 2013 and significantly above analyst estimates, pushing shares up 2.1 percent.
A detailed earning report is expected later in January, but analysts expect Samsung’s chip division to show a record quarter thanks to strong demand from smartphone makers, with the mobile division expected to bounce back from the pain felt in Q3 as a result of the pricey recall.
Overall Q4 revenue is predicted to come in at 53 trillion won ($44bn or £35bn), down 0.6 percent from the year before.
Samsung has been on show at CES 2017 in Las Vegas this week, revealing two new mid-range smartphones to add to its Galaxy A series, as well as announcing a £122m investment fund focusing on virtual reality and artificial intelligence startups.
Quiz: How much do you remember about the smartphones of 2016?
