Samsung profits up 50%, marking rapid recovery from Galaxy Note 7 battery fires
Company was engulfed in a scandal in October when its flagship smartphones began bursting into flames
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Samsung said its profits would soar by 50 per cent in the fourth quarter, marking a rapid recovery from the Galaxy Note 7 debacle.
The earnings are the company’s highest since 2013 and exceed analysts estimates. The company was engulfed in a scandal in October when its flagship smartphone devices began bursting into flames. The handsets were banned from aircraft and the disaster was compounded after hastily-issued replacement models also began igniting.
The firm was forced to scrap the Note 7 altogether at a cost of billions, though Samsung said it had enough cash to absorb the losses.
The company said 9.2 trillion won (£6.2bn) in operating profit in the three months from October to December, up from 6.1 trillion won a year earlier.
The South Korean won’s recent depreciation may have helped boost profits as component sales are typically settled in US dollars. The currency fell 8.8 per cent against the dollar in the fourth quarter.
Samsung forecasts a 10 per cent rise in its annual income but expects sales to fall 1 per cent in the fourth quarter to 53 trillion won.
Analysts predict strong growth in Samsung’s chip business, which sells components to other smartphone makers including Apple. The division is expected to earn a record 4 trillion won in operating profit in October-December.
Its embattled smartphone division is expected to rebound from quarter three.
“Samsung posted solid earnings only with sales of older smartphone models like the S7 after the Note 7’s discontinuation,” said said Kim Sung-soo, a fund manager at LS Asset Management.
“This makes me have hopes for the Galaxy S8. Should they fare well, I expect Samsung to report record earnings this year.”
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments