Samsung expects 50-per-cent rise in profit despite smartphone debacle

Samsung Electronics on Friday said it expected its fourth-quarter operating profit to jump by about 50 per cent, despite being forced to withdraw its flagship Galaxy Note 7 smartphone in October.

Analysts said the South Korean electronics giant's successful memory chips and screens business had counteracted the fallout from the smartphone debacle, which cost an estimated 2.5 trillion won (2.1 billion dollars) in the October-to-December quarter.

Operating profit likely leapt to 9.2 trillion won year on year, Samsung said, beating analysts' expectations to take it to a three-year high, despite sales which were predicted to have dropped slightly to 53 trillion won.

Full-year sales were expected to rise by 0.4 per cent to 202 trillion won, with operating profit over the same period hitting just over 29 trillion won, a rise of 10.6 per cent.

The company traditionally presents exact figures at a later date.

The figures are highly anticipated indicators of the health of the multinational, following Samsung's botched attempt to deal with reports last year that its newest range of phones could catch fire.

Some airlines responded to the reports by banning the phone on its flights.

The Galaxy Note 7, which was launched in August, was finally discontinued altogether in October following a global recall, in a move seen as damaging for Samsung in the crowded smartphone market.

Last update: Fri, 06/01/2017 - 17:59
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