The Galaxy Note7 Setback Didn’t Prevent Samsung From Recording a Huge Profit for Q4 2016
Samsung has to thank its other business divisions and the sales garnered by its Galaxy S7 and Galaxy S7 edge because if not for these variables, the company might not have posted a healthy financial run for the fourth quarter of 2016. Even after the Galaxy Note7 saga took place, Samsung continues to post a profit, showing that multiple business pillars have served the company very well.
Q4 2016 Profit Was the Best Quarter for Samsung in a Period of Three Years
Still managing to report a profit while carrying out the Note7 recall is quite phenomenal and according to the latest financials, the company managed to generate a revenue of 53.3 trillion won, out of which 9.22 trillion won was operating profit ($7.92 billion). What this also shows is had the Note7 sold at its current pace without exhibiting issues, the company might have reported a much higher operating profit for Q4 2016 compared to what you’re looking at right now.
After the company pulled the plug on the Galaxy Note7 production, Samsung immediately ramped up production of its Galaxy S7 and Galaxy S7 edge units, and we can see that it was a rather smart decision. In addition, various colored models of the aforementioned devices were also released to help users forget about what transpired with the Note7 and to take on the Jet Black finish of the iPhone 7.
While smartphone sales of these flagship phones helped to alleviate the damage caused by the Note7, the primary revenue generators were sales coming from its display panel segment and memory business. Samsung’s V-NAND memory units were also a contributing factor to the hefty amount of profit generated for this quarter. With the company introducing a new and improved way of checking smartphones for internal compromises, Samsung has also stated that it is not killing off the Galaxy Note brand, all the while saying that the Galaxy S8 is going to be both safe and innovative.
Looks like the company has finally cleaned up its act with phones, so it is possible that Samsung displays an even more remarkable level of performance this coming quarter.
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