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Samsung Reports Quarterly Profits Despite Exploding Note 7 Disaster

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Samsung is going through some rough times, but that hasn’t stopped the company from turning a profit.

Although the South Korean tech giant might spend as much as $1.8 billion following its worldwide recall of 2.5 million faulty Galaxy Note 7 devices, the company still expects an operating profit of approximately $7 billion for the third quarter of 2016.

Despite the widely publicized controversy with exploding Note 7 phones, Samsung’s chip and display business is keeping the company afloat, ousting its mobile department as the company’s top-earning division.

SK Securities analyst Young Woo Kim told AP that Samsung’s chip and display division has generated as much as half of the company’s revenue for this quarter. What’s alarming, however, is Kim’s estimate that Samsung’s mobile business has hit its lowest point within the past three quarters.

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Despite being in the black, Samsung has struggled to keep sales consistent. Following ongoing problems with faulty batteries, reports suggest the company has suffered a five percent drop in sales of mobile devices compared to the previous year.

In light of numerous reports of hazardous Note 7 devices, the South Korean giant issued an official recall earlier in September.

While it seemed things were finally getting back to normal, last week new reports surfaced suggesting that replacement units are also catching fire.

Analysts project Samsung’s profits will continue to grow over the coming quarters, but a second recall might put a dent in the company’s earnings.

Source: TheNextWeb

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