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Samsung back on track, sees 50 percent year on year hike in operating profits

The global recall of Samsung Galaxy Note 7 actually hammered Samsung with a loss of about $17 billion.

Samsung Electronics which had a pretty tough Q4 2016 due to Note 7 fiasco seems to have recovered from it quite well. The company on Thursday announced that its Q1 2017 operating profits were around $8.7 billion and total sales stood at $44.1 billion which is almost 50 percent increase when compared to Q1 2016. As per a report, Analysts claims that Samsung must have generated about $1.8 billion worth of profit in Q1 2017 after incurring a hefty loss of $5.3 billion last year due to the Galaxy Note 7.

Nevertheless, the latest financial figures show how Samsung has managed to overcome all the obstacles after messing up with one of its flagship products last year. The global recall of Samsung Galaxy Note 7 actually hammered Samsung with a loss of about $17 billion. Now although Samsung will release a detailed version of its quarterly results sometime in April, these figures are enough to absorb the fact that Samsung is actually back on track.

Now if you are thinking that Samsung managed to make this grand comeback via its consumer electronics business, then you should read further. Apart from consumer electronics where it sells Smartphones, TVs, ACs etc. Samsung is also world’s largest memory chip maker which is why its deal with Qualcomm saw it suck all the Qualcomm Snapdragon 835 chipsets in the initial phase. Apart from its component business, Samsung is also believed to have received an order from Apple for supplying 70 million OLED display panels for the next iPhone.

Lee Seung-woo, an analyst at IBK securities said – “Earnings from components, especially semiconductors, are so strong that they can more than offset the huge losses from last year’s Note 7 failure,”

Meanwhile, Analysts also predicts Samsung will soar up its operating profits to KRW (Korean Won) 50 trillion by the end of this year which is roughly $44 billion.

Last week, the South Korean giant introduced its this year’s flagship – Galaxy S8 and Galaxy S8+ which looks promising and will surely attract a lot more sales figures this time around. On the other hand, we don’t really know if Samsung will release its Galaxy Note 8 this year as some previous rumours suggested that the company might, in fact, skip the Note series for this year.

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