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