Samsung predicts biggest profits in three years Note 7 recall

Samsung predicts biggest profits in three years, just three month after Note 7 recall

Samsung Galaxy Note 7 

it's been less than four months since Samsung was forced to issue an embarrassing recall of one of its flagship phones in year-of-year operating profit for the fourth quarter of 20116. In Q4 earnings guidance, published today, Samsung said it was expecting a consolidated operating profit of 9.2 trillion won ( about $7.2 billion ) for the period, almost double the 6.14 trillion won ( about $5.2 billion ) in profit it received in the same quarter last year.



if accurate, the guidance indicates that Samsung's costly recall  of its Note 7 smartphone was only a temporary blip in the company's financial situation, rather than a lingering hit to consumer confidence. That's not to say that the Note 7 didn't have an effect, but that it appears its major financial repercussions on the wider may have been confirmed to the third quarter of 2016.

Samsung Galaxy Note 7 recall

Samsung had originally predicted a year-on-year profit growth for Q3 this year, but had to revise those estimates after it issued a full recall of the Note 7, slashing profit expectation by third. The actual figures bore those revised expectation out, with Samsung earning just 5.2 trillion won (  about $4.4 billion ) for Q3 2016 having  previously expected some 7.8 trillion won ( about $6.6 billion ).



But as other analytics noted, unlike 2013's previous profit high. Samsung's apparent Q4 success would not be driven by the mobile division, but by sales of memory and screens, as well as the devalued Korean won against the dollar. Samsung's Note 7 recall may not have caused as much damage financially as expected, but the company still has something to prove with its next major phone release.



source : The Verge