Despite the Galaxy Note 7 fiasco, Samsung will report strong Q4 operating profits

Despite the Galaxy Note 7 fiasco, Samsung will report strong Q4 operating profits
Strong results in its semiconductor division will allow Samsung to post better than expected fourth quarter operating earnings this year, in spite of the revenue lost when the Samsung Galaxy Note 7 was pulled from retailer's shelves. The phablet was on the way to becoming a very desirable and profitable device when several explosions related to the battery forced Sammy to recall the device twice, and eventually pull it off the market altogether.

IBK Securities says that Samsung will report operating profit for the quarter of  $7.24 billion USD. Half of it will come from semiconductor  profits helped by strong memory chip sales. HMC Securities is also expecting Sammy to report $7.24 billion USD in Q4 operating profits, which is a 10% hike from the firm's previous estimate. It also would represent the manufacturer's largest operating profit results in three years. Imagine what kind of numbers Samsung might have put up had the Galaxy Note 7 been released without a hitch!

If the analysts are right, Samsung would be reporting a 67% sequential gain from its third quarter operating profit of $4.33 billion USD. Most analysts expected Samsung to report an operating profit below $6.7 billion for the fourth quarter because of the Galaxy Note 7 issue, and a corruption scandal. The latter involved President Park Geun-hye, and a friend of the president named Choi Soon-sil who was said to have illegally interfered in governmental affairs. Samsung reportedly donated a lot of money to foundations run by Choi.          

To complete a comeback for its mobile division, Samsung is expected to shoehorn powerful components inside its next flagship phone. The Samsung Galaxy S8 could be powered by the recently introduced Qualcomm Snapdragon 835 chipset. 8GB of RAM is rumored to be inside. And instead of offering a Galaxy Note branded phablet next year, Samsung could issue a 6-inch Galaxy S8 Plus that would essentially be its 2017 high-end phablet. The company also spent $8 billion USD to purchase audio company Harman, which will help Samsung discover new sources of top line growth

Samsung's shares have recovered from the low of $1,219 USD that they traded at during the beginning of the Galaxy Note 7 issue. They closed today at $1496 USD for a 23% gain since that low point was hit around the middle of September.

source: KoreaTimes via SamMobile                                                                                              

Related phones

Galaxy Note 7
  • Display 5.7" 1440 x 2560 pixels
  • Camera 12 MP / 5 MP front
  • Processor Qualcomm Snapdragon 820, Quad-core, 2150 MHz
  • Storage 64 GB + microSDXC
  • Battery 3500 mAh

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29 Comments

1. Unordinary unregistered

LOL..

2. aegislash

Posts: 1476; Member since: Jan 27, 2015

Eh, I'm just gonna go out on a limb and assume that you're LOLing at all of the fools who said Samsung would suffer greatly because of the Note7 fiasco. ;)

9. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Because they a yes like the Note was a flagship and the only phone pr.product Samsung makes. Where are all the Samsung hating sheep's Now?

11. Settings

Posts: 2943; Member since: Jul 02, 2014

Lol! How does the sheeps get involved into these?

18. Klinton

Posts: 1408; Member since: Oct 24, 2016

How are they not involved? When all the Apple sheep and US media are focused not on, how great one tech company is, in what is doing, - but mostly on, how much is ripping off the consumers. How TH is normal, consumers(and US media) to be proud if they are ripped off. That is now the only ''positive'', that left for Apple and their sheep to brag about. Samsung is real leading tech company - Apple is just packing old tech company backed up by US, Wall Street and media. Period!

26. Settings

Posts: 2943; Member since: Jul 02, 2014

Lol! And how South Korea and China begged to differ with their own perspective products? Was Korea supportive of Apple products? Was US supportive of Sony products? Was China supportive of Samsung? Was Japan supportive of Huawei products? Everyone is patriotic in their own products, irregardles of flaws. That's no sheep.

28. pendragon0202

Posts: 164; Member since: Feb 23, 2015

Well, iPhone 7 is the top selling phone in Korea at the moment.

29. yoghibawono

Posts: 240; Member since: May 04, 2016

huh? not the top selling... the only non korean smartphone in top 10 best selling device in S.Korea...

3. drunkenjay

Posts: 1657; Member since: Feb 11, 2013

The mobile division is just a bonus for them in shares. Samsung is way too big to plummet since they make everything.

20. AlikMalix unregistered

So is Samsung Mobile reporting this or Samsung in whole (everything from semi-conductor to your dishwasher manufacturer)?

22. Cicero

Posts: 1117; Member since: Jan 22, 2014

Samsung semiconductor rules. Did you see those ssd that Samsung made? Nvme standard in pc is next standard.

4. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

Hoping like crazy, they make a Note 8. If not, I'll get the S8 edge, and a note 5. I can't see Samsung not having an S-Pen device for 2017.

13. Klinton

Posts: 1408; Member since: Oct 24, 2016

Why wouldn't Samsung make Note 8? Why doubts? Because US(China, Taiwan) will try to kill it again?? If so, you have a point. Non of them have technology to make such device, so yes, they will try again.

16. chenski

Posts: 762; Member since: Mar 22, 2015

Lol really, my next device will be better than note 8 ahahha

17. tedkord

Posts: 17312; Member since: Jun 17, 2009

Ah, so you're waiting for the Note 9. Well played.

19. Klinton

Posts: 1408; Member since: Oct 24, 2016

How could be better? When there are no signs that other OEM could make device in this category? Please tell me!!!

21. trojan_horse

Posts: 5868; Member since: May 06, 2016

It's already obvious, no need to be told. Nothing touches the Galaxy Note series... nothing!

23. chenski

Posts: 762; Member since: Mar 22, 2015

Obvious? Hahaha they are made for touching, no such thing as untouchable phone, unless you don't plan on using it hahahhaha

24. trojan_horse

Posts: 5868; Member since: May 06, 2016

Nice funny one... But it's clear that I meant to say 'unbeatable' when I wrote "untouchable", since that was in the sense of being unmatched, not in the sense of being untouched by the consumer.

14. sissy246

Posts: 7083; Member since: Mar 04, 2015

It is way to soon for me to believe these rumors. But if there is no note 8( I say there will be) i will just keep my note 5 and maybe like you get a S8 edge.

5. bubbadoes

Posts: 1225; Member since: May 03, 2012

they make a lot of inferior junk. note 7 recalled. washing machines recalled. refrigerators that cost 1500 and up and last 2 years before the repairs start

6. sissy246

Posts: 7083; Member since: Mar 04, 2015

Whatever

7. ph00ny

Posts: 2026; Member since: May 26, 2011

At least they're recalled....

8. TerryTerius unregistered

There aren't that many companies that haven't had recalls. Including most well known luxury brands. That's not a universal excuse or completely ignoring faults, but still.

12. tedkord

Posts: 17312; Member since: Jun 17, 2009

They produce less products than you do tears, that's for sure.

15. Klinton

Posts: 1408; Member since: Oct 24, 2016

Why all the media stress on the 'semiconductors' sale? LOL Why ignore the phones? Galaxy S7/7Edge fly from the shelves. Same with A line(not worse choice than iPhone or Pixel), and many other models.

25. fyah_king unregistered

Samsung is different than Apple. They don't just rely on their mobile profits.

27. galaxy-gear

Posts: 119; Member since: Sep 30, 2016

Samsunh is big

* Some comments have been hidden, because they don't meet the discussions rules.

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