Record Chip Profits Boost Samsung's Fourth Quarter Earnings

by

Samsung announced fourth quarter operating profits of $7.9 billion in its earnings call on Tuesday, 50 percent higher than the same period a year ago.

The number was in line with Samsung's guidance earlier in the month and reflects record-high earnings from its memory chip division, glossing over the company's fire-prone Note7 woes, which are said to have cost it at least $5 billion since the third quarter.

But the results also come on the back of strong sales of the company's Galaxy S7 and S7 Edge phones, apparently confirming reports that suggested most consumers stayed loyal to the brand despite the absence of the Note7, which was considered to be the closest rival to Apple's iPhone 7.

samsung-800-new
Samsung said its mobile division generated $2.1 billion in operating income over the last three months of 2016 – an increase of 12 percent over Q4 2015 – while its display business racked up $1.1 billion, thanks to rising demand for the company's OLED mobile displays. (Samsung is also said be the sole supplier of the displays for the 2017 iPhone 8.)

During Samsung's conference call, the company offered a preview of its mobile business plans for the year. As expected, Samsung said its next round of smartphones would include voice-activated artificial intelligence features – leaks suggest the Siri-like feature will be called "Bixby". The South Korean firm also said it would be releasing a phone with a "differentiated design", leading some to speculate that a rumored foldable handset is almost ready for market.

The results appeared unaffected by the scandal surrounding Samsung president Park Geun-hye, who is under investigation over alleged bribes paid to an associate to win support for a merger of affiliates in 2015.

Tag: Samsung

Top Rated Comments

(View all)
Avatar
49 months ago

Serious question(s). Can you provide evidence on why Samsung is corrupted? Are other companies less corrupt than Samsung or are you fear mongering?

It's all ('https://qz.com/888609/samsung-heir-lee-jae-yong-avoids-arrest-in-south-koreas-bribery-scandal/') pretty well known ('http://www.independent.co.uk/news/world/asia/tax-evasion-bribery-and-price-fixing-how-samsung-became-the-giant-that-ate-korea-8510588.html').

But when your company represents 33% of the GDP of your country, you basically are the country, and countries don't go to jail.
Score: 6 Votes (Like | Disagree)
Avatar
49 months ago

What makes this accounting report creative? The way I see it is the S7 likely did very well and helped maintain sales with the Note unavailable.

Serious question(s). Can you provide evidence on why Samsung is corrupted? Are other companies less corrupt than Samsung or are you fear mongering?

I don't have time to dig out specific research reports though I'm sure they are fairly easy to find. Samsung is generally known for manipulating their sales figures in a multitude of creative ways in order to appease share holders and create a hologram of earnings growth.

They run the country. If Samsung go down. Heads roll. Literally.

Yes some other companies are corrupt. In this world you have good. You have bad. In all walks of life. Doesn't make it acceptable.

The company that wrote an internal manual on how to copy the iPhone deserves no respect.
Score: 3 Votes (Like | Disagree)
Avatar
49 months ago
Why are so many people butt hurt that Samsung is doing good? Even after one of the most disastrous phone launches in gadget history they still managed to kick butt and take names. Demand for the Note line is so high their still keeping the name Note 8 for their next flagship phablet.
I have a iPhone 7 Plus but I welcome the competition in 2017. If Apple releases another "S" model I'm jumping the Apple ship. I can already guarantee that Note 8 will be phone of the year by many in the industry and the biggest seller that Samsung ever had. With the S8 and Note 8 Samsung will be unstoppable unless the competition can fight back. This is what competition is all about!!!
Score: 2 Votes (Like | Disagree)
Avatar
49 months ago

It's all ('https://qz.com/888609/samsung-heir-lee-jae-yong-avoids-arrest-in-south-koreas-bribery-scandal/') pretty well known ('http://www.independent.co.uk/news/world/asia/tax-evasion-bribery-and-price-fixing-how-samsung-became-the-giant-that-ate-korea-8510588.html').

But when your company represents 33% of the GDP of your country, you basically are the country, and countries don't go to jail.

Or those company's leaders get convicted and then promptly pardoned.
Score: 2 Votes (Like | Disagree)
Avatar
49 months ago
Creative accounting at it's best.

One of the most corrupt companies around today.
Score: 2 Votes (Like | Disagree)
Avatar
49 months ago

Creative accounting at it's best.

One of the most corrupt companies around today.

What makes this accounting report creative? The way I see it is the S7 likely did very well and helped maintain sales with the Note unavailable.

Serious question(s). Can you provide evidence on why Samsung is corrupted? Are other companies less corrupt than Samsung or are you fear mongering?
Score: 2 Votes (Like | Disagree)

Top Stories

Apple References Unreleased 2020 16-Inch MacBook Pro in Boot Camp Update

Monday October 26, 2020 8:42 am PDT by
Last week, Apple released an update for Boot Camp, its utility for running Windows on a Mac. While this update would typically be unremarkable, several of our readers noticed that the release notes reference an unreleased 2020 model of the 16-inch MacBook Pro. While this could easily be a mistake, the 16-inch MacBook Pro is nearly a year old, so it is certainly a worthy candidate for a...

Google Reportedly Pays Apple $8-12 Billion Per Year to be Default iOS Search Engine

Sunday October 25, 2020 2:59 pm PDT by
The United States Justice Department is targeting a lucrative deal between Apple and Google as part of one of the U.S. government's largest antitrust cases, reports The New York Times. On Tuesday, the Justice Department filed an antitrust lawsuit against Google, claiming the Mountain View-based company used anticompetitive and exclusionary practices in the search and advertising markets to ...

iPhone 12 Pro Allows You to Measure Someone's Height Instantly Using LiDAR Scanner

Saturday October 24, 2020 11:12 am PDT by
iPhone 12 Pro models feature a new LiDAR Scanner for enhanced augmented reality experiences, but the sensor also enables another unique feature: the ability to measure a person's height instantly using the Measure app. You can even measure the seated height of a person in a chair, according to Apple. When the Measure app detects a person in the viewfinder, it automatically measures their...

MagSafe Charger Only Charges at Full 15W Speeds With Apple's 20W Power Adapter

Monday October 26, 2020 3:38 pm PDT by
Alongside the iPhone 12 and 12 Pro models, Apple introduced a new MagSafe charger that attaches to the magnetic ring in the back of the devices, providing up to 15W of charging power, which is double the speed of the 7.5W Qi-based wireless charging maximum. Apple does not provide a power adapter with the $39 MagSafe charger, requiring users to supply their own USB-C compatible option. Apple...

Early iPhone 12 Tests Show Ceramic Shield is Stronger and More Scratch Resistant Than iPhone 11 Glass

Friday October 23, 2020 1:21 pm PDT by
Apple's new iPhone 12 models are protected by a Ceramic Shield cover glass that has nano-ceramic crystals infused right into the glass to improve durability. According to Apple, Ceramic Shield offers four times better drop protection than the glass used for the iPhone 11 models. YouTube channel MobileReviewsEh conducted some tests on the iPhone 12 using a force meter to compare its performance ...

iPhone 12 Six-Foot Drop Test Results: Ceramic Shield More Durable But Not Damage Proof

Monday October 26, 2020 5:00 am PDT by
Apple's new iPhone 12 and iPhone 12 Pro feature a new Ceramic Shield screen that Apple says offers 4x better drop performance. To test that claim, Allstate Protection Plans put the two models through a range of breakability tests and recorded the results. In a face down sidewalk drop test at six feet, the iPhone 12 suffered small cracks and scuffed corners and edges, leaving sharp grooves in ...

Bloomberg: New AirPods and AirPods Pro Coming in 2021, AirPods Studio Delayed, Third HomePod Model Also Possible

Monday October 26, 2020 3:34 am PDT by
Apple plans to update its AirPods line next year with two new models including third-generation AirPods and second-generation AirPods Pro, according to a new report from Bloomberg. The Cupertino, California-based technology giant is working on two new models: third-generation entry-level AirPods and the second version of the AirPods Pro earbuds, according to people familiar with the plans. ...

Report: Apple Silicon iMac Featuring Desktop Class 'A14T' Chip Coming First Half of 2021

Tuesday October 27, 2020 4:14 am PDT by
The first iMac powered by Apple Silicon is set to arrive in the first half of next year and will feature a desktop class "A14T" chip, according to Chinese-language newspaper The China Times. Codenamed "Mt. Jade," Apple's first custom-made desktop processor will be twinned with its first self-developed GPU, codenamed "Lifuka," both of which are being produced using TSMC's 5-nanometer process, ...

iPhone 11 Pro Outlasts iPhone 12 and 12 Pro in Extensive Battery Life Test

Friday October 23, 2020 8:36 am PDT by
Arun Maini today shared a new side-by-side iPhone battery life video test on his YouTube channel Mrwhosetheboss, timing how long the new iPhone 12 and iPhone 12 Pro models last on a single charge compared to older models, with equal brightness, settings, battery health, and usage. All of the devices are running iOS 14 without a SIM card inserted. In the test, the iPhone 11 Pro outlasted both ...

Apple Warns MagSafe Charger Can Leave Circular Imprints on Leather Cases

Friday October 23, 2020 3:23 pm PDT by
If you keep your iPhone in a leather case while charging with Apple's new MagSafe Charger, the case might show circular imprints from contact with the accessory, according to a new Apple support document published today. Apple's leather cases for the iPhone 12 and iPhone 12 Pro are not available until November 6, but a MacRumors reader has already shared a photo of a circular imprint on...