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Samsung posts major revenue and profit growth for Q4 and full-year 2016

Samsung posted year-over-year growth of about 50% for Q4 2016. (Source: Samsung)
Samsung posted year-over-year growth of about 50% for Q4 2016. (Source: Samsung)
One phone does not make a company. Despite setback with the Galaxy Note 7, Samsung recorded a massive jump in profits for FY 2016.

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Samsung is on fire, and it's not because of the Note 7.

Today, the Korean tech giant reported a revenue of $173.48 billion USD (201.87 trillion KRW) and an operating profit of $25.13 billion USD (29.24 trillion KRW) for 2016. Total revenue and profit for Q4 2016 were $44.60 billion USD (53.33 trillion KRW) and $7.92 billion USD (9.22 trillion KRW), respectively.

Samsung said that the star of its fourth quarter earnings was its “components business, mainly the Memory business and the Display Panel segment, which manufactures OLED and LCD screens.” Samsung went on, saying that sales of “high-end, high-performance memory products” (such as V-NAND chips used in SSDs) and “strong shipments of OLED and large-size UHD panels contributed to profitability.” Essentially, most of Samsung’s Q4 revenue came from memory chips and 4K TVs.

Even with the Galaxy Note 7 recalls, which cost the company an estimated $5 billion USD, the IT & Mobile Communications Division posted a profit of $2.14 billion USD (2.5 trillion KRW) based mostly on sales of the successful Galaxy S7 and Galaxy S7 Edge devices. Samsung’s robust mid- and low-range smartphone markets also contributed to profitability.

This year, Samsung is seeing increased demand for flexible OLED panels and “value-added semiconductor products.” The company will focus on their NAND and DRAM manufacturing units and thriving in an increasingly competitive large-size display market (think TVs). Samsung will also focus on the devices tailored for Internet of Things (IoT) applications and integrating artificial intelligence (AI) in new and existing product lines. Samsung is predicting that “new services such as artificial intelligence (AI) will be a differentiating factor” in various industries, particularly mobile devices and automobiles.

The full financial statement can be viewed here.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2017 01 > Samsung posts major revenue and profit growth for Q4 and full-year 2016
Sam Medley, 2017-01-24 (Update: 2017-01-24)
Sam Medley
Sam Medley - Review Editor - @samuel_medley
I've been a "tech-head" my entire life. After graduating college with a degree in Mathematics, I worked in finance and banking a few years before taking a job as a Systems Analyst for my local school district. I started working with Notebookcheck in October of 2016 and have enjoyed writing news articles and notebook reviews. My areas of interest include the business side of technology, retro gaming, Linux, and innovative gadgets. When I'm not hunched over an electronic device or writing code for a new database, I'm either outside with my family, playing a decade-old video game, or sitting behind a drum set.