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Record Chip Profits Boost Samsung's Fourth Quarter Earnings

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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.

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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

djcerla Avatar
121 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)
121 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)
121 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)
121 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)
121 months ago
Creative accounting at it's best.

One of the most corrupt companies around today.
Score: 2 Votes (Like | Disagree)
macs4nw Avatar
121 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: 1 Votes (Like | Disagree)

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