Samsung has seen its Q4 profits for the three months ending December 2016 grow from over £4 billion to £5.8 billion, despite the Galaxy Note7 fiasco towards the end of last year.
Samsung released its Q4 2016 financial results today, and as predicted in the Note7 post-mortem press conference, even that £4b catastrophe couldn’t dent rising overall profits.
The recall of 2.5m potentially faulty Galaxy Note7 handsets didn’t seriously hurt operating profit for the entire year, which totalled £19 billion, an increase from £17 billion the previous year. More than £1.3 billion of the Q4 figures came from Samsung’s mobile division, while total mobile operating profit throughout 2016 was £6 billion.
Though the quarter’s sales were relatively flat at £36 billion, total sales for 2016 reached £137 billion, with mobile making up £15 billion of the Q4 figures, an increase from £13 billion a year ago.
The company claimed that strong sales growth was driven by shipments of the Galaxy S7 and S7 Edge smartphones, as well as other mid to low-end devices. It predicted a slowdown in the smartphone market next year, but saw potential in AI as an area for differentiation.
The results statement concluded ‘Samsung will look to reinforce its market leadership and drive growth in the premium smartphone segment with differentiated design and innovative features. The company also plans to enhance the competitiveness of its mid-to-low end models by introducing water and dust-proof features and fingerprint recognition.’
‘In addition, the company will continue to strengthen its software and service competencies to provide new customer values by expanding the roll out of services such as Samsung Cloud and Samsung Pay, and by introducing AI-based services on premium smartphones.’