Despite exploding Galaxies, Samsung rockets to a 50pc Q4 profit boost

6 Jan 2017

Samsung Q4 profits appear to be in no way diminished by the Note7 exploding phone debacle. Image: TK Kurikawa/Shutterstock

The exploding Galaxy Note7 debacle has done little to diminish Samsung’s profit outlook for the fourth quarter, with profits forecast to jump 50pc year-on-year.

Bruised but unbowed, the Korean consumer tech giant has said its fourth quarter profits are likely to be up 50pc from a year ago, to its highest level in more than three years.

The rise in profit is due to higher-than-anticipated chip sales and a rebound in smartphone demand.

The news comes after a disastrous 2016 for the company.

Steady chip sales buoy Samsung

In what has to be the biggest product recall in tech industry history, Samsung had to recall some 2.5m Note7 smartphones after reports of the devices catching fire and exploding began to circulate.

The news was a PR disaster for the company, with flights around the world banning travellers from bringing Note7s aboard aeroplanes.

But Samsung appears to be dusting itself off and is estimating an operating profit of 9.2trn KRW ($7.75bn) on sales of 53trn KRW ($44.6bn).

The Korean tech giant has weathered the storm through steady sales of electronic components like semiconductors, displays and memory, as well as strong sales of its mid-range smartphone devices.

Samsung business sign. Image: TK Kurikawa/Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years