Samsung Galaxy Note 7: Record Profits? Yes, Record Profits
You might have thought that the profits of Samsung would have been badly affected by the Samsung Galaxy Note 7 disaster, but you would be wrong. In fact the total opposite is true as the company is expecting the profits of the fourth quarter of 2016 to be record profits.
The Samsung Galaxy Note 7 was launched and then recalled not once but twice, due to it catching fire. But it seems that the company hasn’t been affected. They are going to post what they claim to be the biggest jump in profits for three years.
The four quarter operating profits of Samsung are said to be rising 49.8% compared to the previous year, to $7.76 billion. This means they would have earned the biggest profit in three years, even with the fallout down to the Samsung Galaxy Note 7.
The phone maker had to recall 2.5 million units of the Samsung Galaxy Note 7 and write off $5 billion at least. However, business has never been better for the company. Samsung used to get three quarters of the profits from the mobile phone division but now they get it from other avenues and this is why the Note 7 hasn’t really affected them. At the moment phones bring in 65% of earnings, which is 1.9% operating profit.
Samsung is of course one of the biggest chip makers and they have a 49.1% share of global DRAM sales along with 35.5% NAND flash memory sales. So it looks likes the Samsung Galaxy Note 7 mess hasn’t really affected them.