Technology - - Jan 24,2017
Samsung Electronics emerged with a 50 percent surge in the last three months of 2016, despite the infamous Galaxy Note 7 that led to widespread criticism for the company.
The South Korean tech giant registered a quarterly profit of 9.2 trillion won ($7.2 billion), its highest since 2013. This profit was almost three times compared to the company’s 3.2 trillion won gain for the same time phase in the earlier year.
Experts from FactSet, a financial data provider, anticipated its profit at 6.52 trillion won.
The huge earnings highlight Samsung’s potential to dismiss the $5 billion profit hit that it had faced by halting the sale and production of Galaxy Note 7. The strength is denoted by the company’s large scale electronics market.
This is evident as even Samsung's mobile division, which was nearly dragged into trouble by the Note 7 crisis in the previous quarter, booked a 12 percent profit increase in the latest report as other smartphones like the Galaxy S7 sold well.
This report follows the company’s previous announcement in the same week, where it revealed the results of investigations into what caused the Note 7 phones to catch fire.
Samsung’s major contributor has been its semiconductor business, which makes the chips for phones and servers. These chips are even used by Apple devices. Thus, Samsung was pulling revenue through iPhone 7 sales, at a time when it was suffering losses in the Note 7 fiasco.
Samsung’s memory chips and display screens are also used by its global competitors like DELL, LG and Oppo. A new type of screens, named OLED, is becoming very popular among smartphone companies and is solely controlled by Samsung.
Another potential reason for the world’s largest smartphone seller’s profits is the strengthening dollar. The won’s value against the US dollar has fallen, due to which Samsung’s bumper overseas sales are worth much more when they are brought back to South Korea.
Recently, popular US chip maker Qualcomm has also partnered with Samsung to develop its latest processor named Snapdragon 835.