What Galaxy Note 7 debacle? Samsung releases stellar Q4 2016 and full-year financial results
It’s only fitting that Samsung closely follow the detailed analysis and renewed admission of guilt for arguably the most embarrassing snafu in the company’s history with final Q4 2016 and full-year financial reports making it seem like nothing ever happened.
Believe it or not, both consolidated revenue and operating profit numbers for both the October – December quarter and the year as a whole are up from scores posted 12 months back. Namely, Samsung racked up KRW 53.33 trillion and 9.22 trillion in revenue and profit respectively these past three months, compared to 53.32 and 6.14 trillion the previous year.
Meanwhile, 2016 totals jumped from KRW 200.65 trillion and 26.41 trillion in 2015 to KRW 201.87 and 29.24 trillion for revenue and profit respectively. Relatively small gains across the board, but quite remarkable, considering the billions and billions of dollars bled by the Galaxy Note 7 during Q3, and the advanced age of the GS7 duo over the holidays.
Nonetheless, Samsung singled out “continued robust sales of the flagship Galaxy S7 and S7 Edge” as a key mobile division growth driver, alongside “improved profitability in the mid-to-low end segment.”
Going forward, it’s pretty much set in stone that “AI-based services” (Bixby) will need to differentiate the Galaxy S8 from the competition, and more and more mid-to-low end phones have premium features like water resistance and fingerprint recognition on the way.
Of course, it’s important to highlight that, while smartphones exceeded Q4 2016 financial expectations, components were in fact the best performers of said period, mainly memory chips and display panels. The semiconductor business alone registered a monumental 77 percent year-on-year surge in operating profits, from KRW 2.8 trillion to KRW 4.95 trillion.