Menu
Samsung sees 2016 profit jump despite Note 7 debacle

Samsung sees 2016 profit jump despite Note 7 debacle

The company sees AI as a key differentiator for its smartphones in 2017

Samsung Electronics said its profit rose almost 20 percent in 2016 despite nearly flat sales and the costly recall of the Note 7 smartphone.

The company reported an annual net profit of 22.7 trillion won (US$19.5 billion), up 19.2 percent, on sales of 201.9 trillion won (US$173.5 billion), up just 0.6 percent.

Samsung saw some of its biggest sales gains in memory chips on the back of strong demand from smartphone makers. The company is one of the world's biggest memory chip manufacturers.

The mobile division saw sales fall 3 percent in 2016 to 97.8 trillion won. It's Samsung's biggest division by sales and was hit by the recall of the Note 7 smartphone and slowing demand for high-end phones.

A day earlier, Samsung divulged that battery problems were to blame for the fires and explosions that led to the massive recall. It said batteries from two manufacturers suffered from internal problems that caused a short circuit and fire.

Looking ahead, Samsung said it expects the smartphone market to slow down while artificial intelligence services present a new business opportunity. To date, Samsung handsets have featured Google's AI personal assistant, but the company reportedly is developing its own assistant.

Samsung also signaled that it plans to boost the competitiveness of its mid-to-low-end smartphones by adding features that were previously only available in more expensive models.

In the consumer electronics business, sales barely rose but profit more than doubled to 2.6 trillion won. Samsung said it sees high-end QLED televisions and large-screen 4K televisions as key to growth in 2017. It will also attempt to expand the business-to-business side of its home appliance division.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags samsung

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments