It looks like Samsung is doing just fine despite the Note 7 drama that reportedly cost it over US$5 billion.
The company recorded 9.2 trillion won (about $7.2 billion) in operating profit on sales of 53.3 trillion won (about $45.8 billion) during the last quarter of 2016, making that more than 50 per cent jump from a year earlier and also it’s most profitable in more than three years. This number came from mostly its V-NAN memory and OLED displays. “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 wrote in a statement.
Also, the mobile division of the company recorded gains year-on-year, partly due to sales of the Galaxy S7 and S7 edge, as well as mid-to-low end models. It’s mobile business recorded a year-on-year profit increase of 4% to $2 billion. Because component deals are usually conducted in USD, the stronger US dollar against the Korean won also helped boost profits.
The company says it expects a huge bump in sales of low-cost phones in the Galaxy A and J series to help boost sales in the coming months as well. . Samsung is still fighting to make the Note series stand as they also said preparation for the release of the Galaxy S8 and subsequent Note 8 are on-going.
Although Samsung has gained strong financial grounds, they still have a lot of work to do towards regaining consumers’ trust and restoring confidence in its brand.