Believe it or not, Samsung actually posted year-on-year profit growth in Q3 2016
While the long-term repercussions of the seemingly never-ending Galaxy Note 7 fire scandals on Samsung’s financial, reputation and brand awareness health remain impossible to ascertain with any precision, it’s probably safe to say the Korean tech giant has at least managed to temporarily survive the recent hurricane of bad publicity.
Not only that, but somehow, this money-making machine reported a massive estimated 7.8 trillion Korean won ($7 billion) in consolidated operating profit for the third quarter of 2016. Yes, that’s the July – September timeframe, including the delicate first month of fall, when Samsung issued the now infamous global recall, entering full damage control mode instead of selling millions of high-end phones.
How can it be? It’s simple, components such as semiconductors and OLED displays performed so well in the latest quarter that they were able to offset the Note 7’s losses… for the time being, presumably aided by lower-cost, lower-end mobile devices too.
Granted, the financial results are far from final (a full, detailed report is expected out near the end of the month), and consolidated sales have taken a bit of a dive from both Q2’s total of 50.94 trillion won and the 51.68 trillion back in Q3 2015 to approximately KRW 49tn (USD 44 billion) this Q3. Also, profit is down sequentially, from KRW 8.14 trillion.
But incredibly enough, that 7.8 trillion won predicted gain is roughly KRW 400 million higher than the Q3 2015 bottom line. The question is can Samsung keep it up if Galaxy Note 7 exploding news start spreading like wildfire again?