Samsung Q4 profits rise to £5.8bn despite Galaxy Note7 fiasco

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These latest figures follow a recall of 2.5 million Galaxy Note7 handsets which reportedly cost the manufacturer £4.3 billion

Samsung has seen its Q4 profits for the three months ending December 2016 grow from over £4 billion to £5.8 billion following the Galaxy Note7 fiasco towards the end of last year.

The Korean manufacturer released its most recent financials for Q4 today (January 24). Operating profit for the entire year totalled £19 billion, an increase from £17 billion the previous year. More than £1.3 billion of the latest Q4 figures came from its mobile division. Total mobile operating profit throughout 2016 was £6 billion.

Sales for the final three months remained largely flat year-on-year at £36 billion. Total sales for 2016 hit £137 billion. Mobile made up £15 billion of Q4 figures, a rise from £13 billion a year ago. The entire year saw the smartphone maker gather £66 billion in mobile sales. Mobile sales in 2016 were at their lowest since 2011 where numbers reached £36 billion.

The company claimed strong shipments of the Galaxy S7 and S7 edge smartphones, alongside mid to low-end tier devices, helped drive the growth in sales. It expects the smartphone market to slow down, but sees artificial intelligence as an area for differentiation.

These latest results come shortly after the Korean firm had to scrap all production of Galaxy Note 7 handsets in October due to faulty batteries which caused the devices to catch fire. More than 2.5 million phones were recalled, reportedly costing Samsung £4.3 billion.

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