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Samsung remains almost unaffected financially by the Galaxy Note 7 disaster

9 January, 2017 Samsung


Everyone knows what happened with the Galaxy Note 7 and that knowledge had led experts to believe that the disaster would cost Samsung a huge sum of money; somewhere close to the figure of $17 billion to be precise. Strangely enough, the results seem to disagree.


According to the Korean tech giant, they are enjoying an operating profit of 9.2 trillion won, which is equivalent to $7.2 billion. Considering that Samsung had enjoyed a profit of 6.14 trillion won or $5.2 billion in Q4 2015, that's almost a 50% increase in profits! At this point, one has to wonder, where did the "loss" suffered by the OEM due to the failure of the Galaxy Note 7 go?


The operating profit made by Samsung in Q4, 2016 is not only bigger than Q4, 2015, but it is also the biggest ever in any quarter of any year, second only to the profits enjoyed by the company in Q3 2013. This remarkable and astonishing feat was achieved thanks mainly to its semi-conductor and OLED departments, which managed to make record amounts of profit due to demand from Chinese smartphone manufacturers. In fact, out of the 9.2 trillion won operating profit reported by the company, 4.5 trillion won ($3.8 billion) came from its semi-conductor business alone. Some experts have also pointed out that Samsung's decision to deal only in USD has also played a big part here, especially since the Korean won is comparatively weaker by a very significant margin.


Saikat Kar (tech-enthusiast)

 


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