Samsung to report biggest profit in three years despite Note7 recall
Samsung to report biggest profit in three years despite Note7 recall
Despite projections that the Galaxy Note7 would cost Samsung billions of dollars, the South Korean company managed to weather the storm and emerged stronger.
Bloomberg reports that Samsung is expecting to have its best operating profit in three years. Preliminary results released by Samsung suggest that the operating income would increase to 9.2 trillion won (US$7.8 billion) in Q4 2016 thanks to strong sales of its display panels and chipsets. New colors of the Galaxy S7 edge also helped Samsung increase the sales of its smartphones last quarter.
The launch of the upcoming Galaxy S8 smartphone is critical for Samsung as it works hard to regain consumer confidence. The company also cautions investors that there are challenges ahead such as declining demand in key markets and currency fluctuations.