Samsung Quarterly Earnings Guidance Shrugs Off Galaxy Note 7 Woes

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Samsung announced strong third-quarter earnings guidance to investors on Friday despite its exploding smartphone woes, thanks in part to the company's component and display panel business.

The Korean technology firm said it expects to earn $7 billion in operating profit for the three months ended September 30 – a 5.5 percent improvement from a year earlier – in a quarter that includes Samsung's recall of 2.5 million Galaxy Note 7 smartphones.

Samsung_Logo
The company's final earnings won't be released until later in October, but the profit preview demonstrates Samsung's ability to rely on other phone and PC makers to drive sales, and underlines the robustness of Samsung's diversified business model during difficult times.

The company is now the undisputed market leader in DRAM memory chips and next-generation 3-D NAND flash memory chips. Samsung also has a substantial lead over its rivals in sales of OLED panels, which are increasingly being adopted for use in smartphones. Currently, Apple's only supplier signed on to create OLED displays for the iPhone 8 is Samsung.

The exploding Note 7 debacle has dominated headlines recently, with a U.S. passenger plane being evacuated just this week when one of the phones began emitting smoke. Shares dipped 13 percent following initial reports of the widespread problem, which analysts estimate cost the company between $1 and $5 billion, not discounting significant damage to its smartphone brand. And yet shareholders' confidence in Samsung's semiconductor and display manufacturing have seen shares rebound into record territory.

Expectations for corporate governance changes have also fueled some of the recent gains, according to The Wall Street Journal. A day before Samsung's Q3 earnings preview, shares jumped 4.5 percent to a new record high after U.S. activist investor Elliott Management Corp. argued that Samsung was undervalued by as much as 70 percent.

After the release of its earnings preview, Samsung's stock increased by an extra 0.9 percent to finish above the 1,700,000-won mark for the first time in its history.

Tag: Samsung

Top Rated Comments

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53 months ago

Apple authors. Where is the news? (Latest news)

FRESNO WOMAN SAYS HER IPHONE EXPLODED AND CAUGHT ON FIRE IN HER BEDROOM

http://abc30.com/news/fresno-woman-says-her-iphone-exploded-and-caught-on-fire-in-her-bedroom/1543292/

There are plenty of reports recently about iPhone 6 and 7 explosions as well. But they are no news about that. What a shame! Apple media are very good at masking Apple problems.

Let's put it this way.

Even pro-Android websites are focusing overwhelmingly on the Note 7 issue, and aren't covering any similar situations with the iPhone. You think they would be the first to pounce on such news.

Nice try with the conspiracy theories though.
Score: 30 Votes (Like | Disagree)
Avatar
53 months ago
If iPhones were exploding at the rate Note 7's are, including replacement models—on airplanes!—the media and everyone in between would be calling for Tim's assassination. Public hanging locations would be discussed. Time Square and a giant cross the centre of Apple Campus 2 would rank among suggestions. The Verge article would be twice as long with innuendo and video after video and would subsequently stretch to 16 articles. The author would suggest Steve Jobs coffin be exhumed to check for burn marks. And online, in general, beyond English a new language would be developed specifically to make fun of iPhone with sentences never before thought possible. Beats would be mentioned.
Score: 26 Votes (Like | Disagree)
Avatar
53 months ago

Apple authors. Where is the news? (Latest news)

FRESNO WOMAN SAYS HER IPHONE EXPLODED AND CAUGHT ON FIRE IN HER BEDROOM

http://abc30.com/news/fresno-woman-says-her-iphone-exploded-and-caught-on-fire-in-her-bedroom/1543292/

There are plenty of reports recently about iPhone 6 and 7 explosions as well. But they are no news about that. What a shame! Apple media are very good at masking Apple problems.

Every device that uses a lithium ion battery has a chance of exploding, iPhones, Galaxys, Nexus' - all of them. All manner of devices explode all the time for a multitude of reasons.

What sets the Note 7 apart is the frequency it's happening per unit sold, it's thousands of times more frequent than any other device, hence the recall. It's just basic statistics.

If MR decided to report on every time a phone exploded there'd be an article a day, that's why they don't do it. Nothing to do with "masking Apple problems".
Score: 17 Votes (Like | Disagree)
Avatar
53 months ago

iPhone 6 and 6 plus are exploding (2014-2016), Check out google "iPhone fire" (100 news..). Did they fix that?

Seriously? I literally just explained this to you an hour ago..

C'mon if you're going to troll at least do it well.
Score: 13 Votes (Like | Disagree)
Avatar
53 months ago

The irony that those bashing Samsung on here don't realise the iPhone likely wouldn't exist without all of the Samsung components.

Yes it would. Apple uses Samsung against other suppliers for price competition. Every Samsung component in iPhones is also made by others. Samsung lose as many contracts as they win. A10 is fabbed by TSMC. There's no irony.
Score: 11 Votes (Like | Disagree)
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53 months ago



The jump they have on Apple in terms of hardware is being hampered only by the software.

Pahahahahaha. The iPhone 7 has double the single-core CPU performance. Not to even mention the NAND & RAM speed.

What 'jump' are you talking about? A curved display with rotten burn in? Apple have the long game completely in the bag.
Score: 11 Votes (Like | Disagree)

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