58119
Samsung Profits Leap Despite Sluggish Sales
Samsung Profits Leap Despite Sluggish Sales

Samsung Profits Leap Despite Sluggish Sales

Samsung Profits Leap Despite Sluggish Sales

Samsung Electronics’ profits leaped in the fourth quarter, it said Tuesday, despite the humiliating Galaxy Note 7 recall that hammered the reputation of the world’s largest smartphone maker.
The South Korean tech giant took another blow when prosecutors began investigating its involvement in a corruption scandal, which has seen the country’s president impeached, and sought the arrest of the firm’s de facto leader Lee Jae-Yong, AFP reported.
In a statement, the group’s flagship subsidiary Samsung Electronics said it posted operating profits of 9.22 trillion won (US$7.9 billion) during the October to December period, up 50.2% year on year (y/y).
Net profits for the quarter were 7.09 trillion won, up 120%.
Earnings were “driven by the components businesses, mainly the memory business and the display panel segment”, it said, with the stronger US dollar also boosting profits.
Analysts say memory chip prices have been driven up by stronger demand as Chinese smartphone makers release devices with high resolution cameras and bigger storage in a bid to catch up with Samsung and Apple.
As the market leader in multiple segments Samsung’s own chip division “is the biggest benefactor”, said Tom Kang, research director at Counterpoint Technology.
Samsung said it expected “huge growth” in the sector, and is looking forward to 2017, Greg Roh, an analyst at HMC Investment Securities, told AFP: “We are expecting Samsung to post record-high profits this year on the back of rising chip prices.”
For the full year 2016, the firm said in a statement, “Samsung achieved solid results despite the Note 7 discontinuation in the second half” -- the only reference to the debacle that saw the company withdraw its much-publicized device, originally intended to compete with Apple’s iPhone.
Samsung was forced to discontinue the Galaxy Note 7 in October after a chaotic recall that saw replacement devices also catching fire.
In total 3.1 million smartphones were recalled as authorities in the US and elsewhere banned them from use on planes and even from being placed in checked luggage.
Earlier this week Samsung blamed faulty batteries from two different suppliers for the incidents, which the firm previously estimated would cost it $5.3 billion.

 

Short URL : https://goo.gl/4FBvvf
  1. https://goo.gl/u4rho2
  • https://goo.gl/zcyaQ4
  • https://goo.gl/RL2pHo
  • https://goo.gl/79wMij
  • https://goo.gl/wiIvEO

You can also read ...

The share of Iranian railroads in steel transportation is one-third.
There were high hopes for the Iranian mining industry after...
To moderate bank interest rates, the central bank has established links with the Securities and Exchange Organization.
CBI Governor Valiollah Seif has named the newly-formed cordial...
Interbank Transactions Top $800 Billion
Iranian interbank transactions during the fiscal year to March...
New Veep for Economic Affairs
President Hassan Rouhani appointed Mohammad Nahavandian as his...
Amazon, Ebay Purchases Via Third Party Website
A payment facilitation website called ‘Laklak’  (meaning stork...
Tehran to Host 1st Int’l Halal Confab in December
The First International Halal Conference is scheduled to be...
Carpet Exports Exceed $70m in 3 Months
Around $74 million worth of machine-woven carpets were...
Computer Algorithm Maps Brain for First Time
A US research team for the first time has developed a computer...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus