The south Korean Samsung Electronics announced on Tuesday, January 24, a huge leap in its profits in the fourth quarter, despite the humiliation of the recall worldwide of its flagship smartphone, the Galaxy Note 7, that has marred its reputation as a technological giant. In addition to the debacle of the Galaxy Note 7, the juggernaut of south korea also needs to manage another crisis, that of his involvement in the sensational corruption scandal that precipitated the impeachment of president Park Geun-Hye.
Samsung Electronics, the flagship of the giant conglomerate, has posted an operating loss of 9.220 billion won (7.4 billion euros), between October and December, up 50.2% year on year. The net profit amounted to 7.090 billion won, a jump of 120%. These results “were driven by the sector components, especially memory chips, and the segment of screens,” says the group in a press release. The strengthening of the dollar has also been favorable. The current chips are supported by the application, in particular of chinese manufacturers of smartphones that begin to produce gear with cameras high resolution and storage capacity larger in order to try to catch up with Samsung and its rival u.s. Apple. Samsung dominates the market with 3D NAND, memory chips faster and high capacity.
The turnover of the world’s leading manufacturer of smartphones, was 53.300 billion won, almost unchanged compared to the same period of the previous year. On the whole of the past year, Samsung has “achieved a solid performance despite the cessation of the production of the Note 7 in the second half,” said the group, his only reference to the fiasco. On 2016, the operating income grew by 10.7% on a year-to-29.200 billion won while sales only grew 0.6% in 201.900 billion won. Analysts expect the trend to continue in 2017.
“We expect Samsung to reap record profits this year thanks to the increase in the price of chips”, told AFP Greg Roh, analyst at HMC Investment Securities. At the same time, Samsung has announced the repurchase of its own shares for 9.300 billion won. Despite these results, the action fell in the late morning of 0.11% on the stock Exchange of Seoul, to 1.9 million won, after starting up.
Note 7: a debacle of several billion euros
The first south Korean conglomerate had been forced in September to order the recall global Rating of 7 due to battery explosive. When the replacement units have also begun to ignite, Samsung has decided to stop the charges. In total, 3.1 million devices have been recalled, while the Note 7 was supposed to compete with the latest release of the Apple iPhone. This debacle has cost Samsung billions of euros, between the shortfall and the impact -more difficult to estimate – on its image.
The giant south Korean company has just announced after several investigations that defects in batteries produced by two different suppliers were at the origin of the setbacks of the Note 7.
Report of the launch of the Galaxy S8
Its next model, the Galaxy S8, was to be unveiled in February at the Mobile World Congress in Barcelona. But its launch has been postponed to allow for more testing. The group announced the implementation of complex measures for verification in order to avoid such disasters, but some analysts remain skeptical.
in order To Jan Dawson, analyst at Jackdaw Research, the conclusions of the investigations, internal and independent, to think that Samsung has not adequately tested its product in wanting to rush to the market for reasons of competitiveness, to the detriment of the quality control. “I have confidence in the fact that Samsung will implement important changes in its processes in the future, but I doubt more than the culture that has led to these problems changes in the same proportion”, he told AFP.
Samsung passes through one of the worst sequences of his story. The heir to the group, Lee Jae-Yong, vice chairman of Samsung Electronics, has been heard for 22 hours by investigators, who suspected of corruption and abuse of social goods in the scandal involving the president of south korea. It has, however, escaped the arrest claimed by the investigators.
(with AFP)
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