Note 7 Fires And Executive Scandals Be Damned, Samsung Had A Stunning Holiday Season
With the fallout from the exploding Note 7 very much still front of mind, the ongoing executive scandal that threatened to result in the arrest of heir apparent Jay Y Lee and of course the various ongoing patent battles with Apple; the final quarter of 2016 wasn't expected to be a great one for Samsung.
Turns out Samsung fans remain as loyal to Samsung as Apple fans do to Apple. Despite the problems the company has faced sales haven't fallen off as expected. The mobile division (IM) returned sales down just 5% year on year, but increased profitability by 12%, somehow managing to achieve that without the highest of its high-end devices.
For the full year there was a slight increase in profitability in the Mobile division even allowing for a third quarter that was wiped out by the costs of the the Note 7 recall.
Across the company the story was much the same for Q4 - flat sales but increased profitability. The only outlier being the Consumer Electronics division, which saw sales and profit both fall. Across the company sales grew slightly but profits rose by an impressive 50%.
For the full year the company managed to grow sales by 1% but profits by more than 10%.
Samsung tells us that Note 7 owners invariably swapped their recalled device for another Samsung phone, which avoided a disaster. As a result Samsung will continue the Note line with a Note 8 next year, likely to be a phone that is both incredibly well specified and incredibly well tested.