Q3 Profit Grew Amid Galaxy Note 7 Disaster for Samsung

Samsung Electronics is exceeding company estimates for the third quarter of 2016. The report shows that in spite of the problem riddled Galaxy Note 7, the profit margin seems to be heading up. Samsung said that their operating profit of about $7 billion. Sales approximate puts in at around $44 billion. This year’s increase is approximately 3.6 million higher than that of the same period in 2015.

Though the figure is strong and that it is breaking most analyst estimates specially with the Note 7 spectacle, Samsung is seeing the effects of the Note 7 recall. Total sales from July to September have declined specially on the Note 7 smartphones. This period was the time that the issues on the Note 7 was at its peak with their exploding battery. The numbers however are still showing a year-on-year increase for their 2 year records. Samsung however could have pulled up a stronger hold this year if not for the Note 7 snags.  “Samsung was originally expected to perform better and better this year,” said Chung Chang Won of Nomura Holdings.

Samsung’s Semiconductor sector has sustained their profit and made up for the cost from the issues with their mobile division. IBK Securities analyst, Lee Seung-woo said that though the recall had “taken its toll” on the mobile division, Samsung’s “other businesses, particularly semiconductors, have fared extraordinarily well.”

Semiconductors on the Rise

Semiconductor prices on record show a steady increase during the 2^nd and into the 3^rd quarter.

Chung said, “If its mobile unit doesn’t get into further trouble from here and given the strong performance of its components businesses, Samsung shares will continue its upward march.”

However, it seems that Samsung’s woes with the Note 7 is not yet over. A Note 7 caught fire on a Southwest Airlines plane before takeoff. US Regulators launched a new wave of investigation into the new Note 7 incident. The Owner said that the phone they have is already the replacement units for the recall.

See Related Article: Samsung Note 7 Replacement Catches Fire on Plane

 

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