Samsung profit surge despite Note 7 disaster
Despite the fiasco with its flagship Note 7 phone, Samsung Electronics reported a 50% profit surge in its guidance for the fourth quarter.
The earnings estimate is higher than analysts’ predicted and would mark its highest quarterly profit since 2013.
In October, the world’s largest smartphone maker had to scrap the Note 7 after batteries caught fire and even replacement devices went up in smoke.
The strong results are due to Samsung’s semiconductor and display businesses.
In an earlier profit forecast for the fourth quarter, Samsung had said it expected the Note 7 recall would mean a $2.1bn hit to their profits.
The company first issued a recall for the Galaxy Note 7 in September following complaints about exploding batteries.
After replacement devices deemed safe were also found to overheat and catch fire, the company scrapped the phone entirely.
Samsung said that it will “very soon” share details of its inquiry into the cause of the Note 7 problems.
The company will disclose a detailed earnings release for the quarter in late January which will give more insights into the performance of its individual businesses.