Samsung expects profit increase despite Note 7 debacle

Samsung expects profit for the past quarter to be fifty percent higher than in the same period last year. That profit increase comes despite the lost income due to the deletion of the Note 7 smartphone a quarter earlier.

The quarterly profit for the period October to December is 9.2 trillion Korean won, converted 7.4 billion euros, according to Samsung’s preliminary calculations. Bloomberg writes. This would be the highest quarterly profit since the third quarter of 2013. However, Samsung expects a decline in turnover of 9.6 percent.

The company does not specify which divisions or product categories contributed to the profit increase, but the company is likely to benefit from favorable price movements of the Korean won and price increases in memory chips. Samsung has a 49 percent market share in the dram market and 35.5 percent in the nand market, according to research firm IHS.

In addition, it is possible that Samsung has sold more smartphones and successfully put forward its Galaxy S7 as a replacement for the Note 7, which was taken off the market because the battery could explode. Last quarter, the cancellation of the Note 7 had a disastrous effect on the profit of the mobile branch, which fell by 96 percent. Samsung then calculated the negative impact on the fourth quarter to the end of 2016 at approximately 2 billion euros and that for the first quarter of 2017 would still amount to 800 million euros, Samsung expected at the time.