Samsung’s numbers changed a bit last year, no thanks to the Note 7 fiasco. We said they’re up despite the Note 7 recall and we believe so because there are other businesses keeping it afloat. The South Korean tech giant recently announced its Fourth Quarter and FY 2016 Results. Now we know that the company didn’t really do bad. In fact, it still is expecting profit growth for this year. That’s very positive and hopeful of Samsung to be aiming for that because there is political uncertainty in the country and of course, there is still the Note 7 effect.
At present, Samsung is involved once again with Apple in an unpleasant situation involving President Park Geun-hye and several executives. This scandal is expected to bring major changes together with the “changing political landscape in Korea and overseas”. Interestingly, Samsung saw higher earnings despite the slow Q1 and the problematic Q4.
Samsung is determined to rebuild its name by launching the Galaxy S8 and Note 8– all ready, improved, and thoroughly tested. The Note 7 flagship phone was a failure but the company still believes in the Note line.
The company still has its flat screen TVs and memory chips to sell. The forecast is a more stable memory chip market this 2017 for Samsung. Here are some important points of the Q4 and FY 2016 Results:
• Q4 operating profit increased by 50 percent to 9.22 trillion won ($7.93 billion)
• the chips business saw a 77% year-on-year increase, reaching 4.95 trillion won
• flat revenune at 53.3 trillion won.
• In Q4, the mobile business saw a 12% increase in operating profit (2.5 trillion won)
• total capital expenditure (CAPEX) in 2016 was on KRW 25.5 trillion, lower compared to the previous year
• the semiconductor business reached KRW 4.95 trillion in operating profits
VIA: Reuters
SOURCE: Samsung
