Samsung Overcomes Note 7 Fallout To Deliver Strongest Q4 Yet
In spite of the Note7 debacle, Samsung’s latest earnings reports saw it bring in earnings of $7.2 billion in profit on sales of $45.8 billion – more or less exactly what it forecast earlier in the month.
More than just a 50% jump on Q4 of 2015, it’s their most profitable quarter in the last three years.
The company says “fourth quarter earnings were driven by the components businesses, mainly the Memory business and the Display Panel segment, which manufactures OLED and LCD screens. 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.”
A stronger US dollar is also believed had a positive impact on the company’s fortunes.
Looking ahead, the company expects a decline in overall earnings for Q1 as a result of “increased marketing expenses in the Mobile business and a sales decrease of TVs due to weak seasonal demand.”
Speaking to ChannelNews, Samsung say that they don’t expect the Note7’s global recall to affect demand for their 2017 devices.
Richard Fink, Vice President of Samsung’s Mobile Division told ChannelNews that “we have strong relationships with our operator and retail partners, and we have worked together to put customer safety first during the Galaxy Note7 issue. We have openly shared the outcomes of the Galaxy Note7 investigation with our partners and their teams and we look forward to continuing this strong working partnership in 2017.”
“We are confident that together with our partners, we will we continue to expand the sale of existing models and introduce new flagship models to Australian customers,” he said.