What Note 7 recall? Samsung just had its best quarter in three years

Samsung just wrapped up one of its biggest and most embarrassing mistakes in recent memory, and with its announcement of Q4 2016 earnings, it seems ready to put that episode behind it and move forward. The company posted a profit of 9.2 trillion won (around US$7.2 billion), a more than 50 per cent jump from a year earlier.

More impressive is the fact that this is Samsung’s most profitable quarter in over three years, despite the painful Galaxy Note 7 recall (or recalls) that reportedly cost it over US$5 billion. That said, the Note 7 did pull down its Q3 2016 profits, resulting in the company earning about US$2.2 billion less than the US$6.6 billion originally projected.

However, Samsung has bounced back fast, largely on the back of its strong display and DRAM divisions. In a statement on its earnings, the company singled out robust sales of high-end, high-performance memory products, expanded process migration in V-NAND, and strong shipments of OLED and large-size UHD panels as contributing to profitability.

The stronger US dollar against the Korean won also helped boost profits, because component deals are usually conducted in USD.

In fact, Samsung’s beleaguered mobile division even managed to turn out profits of around US$2 billion – a year-on-year increase of about 4 per cent – thanks to solid sales of flagship models like the Galaxy S7 and S7 edge and improved profitability of mid-to-low end products.

But while its strong financial performance will certainly help Samsung reestablish itself, the far tougher battle centers around regaining consumers’ trust and restoring confidence in its brand.

Moving forward, Samsung says it fully intends to maintain its position in the premium smartphone market, and will make its mid- and low-end phones more attractive by including features traditionally reserved for pricier models.

Source: Samsung

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