What Note 7 problems? Samsung reports 50% surge in profit for Q4
Generally speaking 2016 was a rubbish year, however in somewhat of a shock, Samsung says it is on track to report a 50% increase in profits for Q4 2016.
We say this is a shock because following the Galaxy Note 7’s propensity for catching fire analysts predicted that the firm would lose as much as $2.1 billion in profit following the recall of the handset.
As part of its earnings guidance released today Samsung has said that consolidated operating profit for the quarter was approximately 9.2 trillion Korean won. In Q4 2015 Samsung reported operating profit of 6.14 trillion Korean won.
Of course mobile phones are not the only part of the behemoth that is Samsung. Investors pushed share prices up 43% in the hopes that strong memory chip sales and higher demand for OLED screens for mobile phones would make up for the loses sustained by the Note7 catastrophe. The rise in profits is also likely to have been helped along by the depreciation of the South Korean won.
An 8.8% decline in the value of the currency against the dollar coupled with component sales being paid in dollars would have likely helped growth according to Reuters. Strong sales figures for the Galaxy S7 range are also expected to boost earnings.
Samsung is only expected to reveal detailed financial figures later this month yet despite the good news that Samsung has not crashed and burned drove the firm’s share price up 2% this morning to 1 813 000 won according to Bloomberg.
If these projections are in fact as good as they seem Samsung is on track to have the best quarter the firm has seen since 2013 and with the Samsung Galaxy S8 expected to arrive sometime this year, the firm could be on track to having a record year if analysts are to be believed.[Via – TechCentral]