Thenextweb
According to a Samsung Electronics report, profit for the quarter rose by 5%, a figure that wiped out analysts’ concerns.
South Korean technology giant Samsung said yesterday that although the cost of recalling 2.5 million Note 7 in the world has reached as much as 1.8 billion U.S. dollars, the company still expects its third quarter 2016 profit to be close to 7 billion U.S. dollars. This is thanks to its high-quality components - semiconductor and display support.
According to Kim Young-woo, an analyst at SK Securities, Samsung’s semiconductor and display business unit generated a profit equal to half of the company’s total profit for the quarter. However, he also predicted that due to the impact of the recalled door, Samsung's mobile business may fall to the freezing point in the three quarters.
The strong earnings of the semiconductor and display business division helped offset the recall of Note 7. Overall, despite the recall issue, the company’s growth momentum remains unaffected.
Analysts estimate that the quarterly operating profit of the mobile sector is about 2.3 trillion won, compared with 4.3 trillion won in the previous quarter.
Yesterday, Samsung's share price rose 0.65%, reaching a record high of 1.702 million won per share.
Via:thenextweb
Extended reading:
Apple wins "sliding and unlocking" patent war, ruling Samsung to compensate $119.6 million
Samsung acquires new company of Viv Labs, a founding member of Apple Siri
Still a good friend, Samsung will be the founder of Qualcomm