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Samsung records huge rise in profits despite Note 7 fiasco

We now know what caused the Samsung Galaxy Note 7 fires, but it doesn’t appear that two global recalls have had too much effect on Samsung’s earning potential.

A day after blaming two separate battery issues for the exploding Note 7s, the Korean manufacturer revealed it had recorded its best financial quarter in more than three years.

Announcing its fourth-quarter earnings, the Galaxy S7 maker confirmed it had made 9.2 trillion won (£5.8 billion) in profit on sales exceeding 53.3 trillion won (£36.7bn).

Marking a 50% year-on-year jump in profits, the lofty figures make the estimated $5 billion cost of the Note 7 issues suddenly seem less significant.

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Samsung Galaxy Note 7

So, how did Samsung make so much money in the midst of one of the most embarrassing product recalls in history? Well, the company’s a whole lot bigger than its smartphone efforts.

As well a weaker Korean won relative to the US dollar boosting profitability, Samsung confirmed that display panel and chipset sales helped drive its earnings.

“Robust sales of high-end, high-performance memory products and expanded process migration in V-NAND, plus strong shipments of OLED and large-size UHD panels contributed to profitability,” the company confirmed in an official statement.

On the smartphone side, the Galaxy S7 and the firm’s lower-end handsets picked up the Note 7’s slack and drove the firm to a 4% year-on-year increase in profits, a figure than equates to about $2 billion (£1.6bn).

As well as confirming the cause for the Note 7 issues, Samsung, on Monday, revealed that the Galaxy S8 will not debut at MWC 2017.

Instead, it’s been suggested the eagerly awaited handset is being geared up for an April unveiling.

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Would you still buy a Samsung phone in the wake of the Note 7 disaster? Let us know below.

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