Samsung reports quarterly profit despite decline in sales
Releasing its fourth-quarter performance report on Tuesday, Samsung announced that it's operating profit from the IT & mobile business division jumped 12 per cent to 2.5 trillion won (US$2.1bn), while sales for the business slipped 5.6 per cent to 23.6 trillion won (US $20.3bn).
The results represented a notable improvement from the smartphone maker's previous quarter, when it reported its worst operating profit in two years. It may be noted here that the company had recalled its Galaxy Note 7 smartphone and then kill it off in the third quarter of last year.
In third quarter of last year, Samsung's mobile division had reported an operating profit of 100 billion won (US$87.8M), suffering a fall of around 96 per cent form the previous quarter.
For 2017, Samsung expects slow growth in demand for smartphones. However, the company stressed that it would continue to innovate in software as well as hardware in addition to prioritizing consumer safety.
After releasing fourth-quarter results, Samsung said, "The mobile business will seek to strengthen its leadership in the premium market and boost competitiveness of mid-to-low end smartphones by adding innovative features available in high-end models."
While Samsung has proven that it can make profits despite a major product disaster, experts warned that the South Korean manufacturer will have to deliver a tremendously superior line of smartphones this year if it wants to continue to hold onto its dominance in the Android ecosystem.
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