News: Samsung Anticipates Strongest Profits in Years Despite Note7 Debacle

Samsung Anticipates Strongest Profits in Years Despite Note7 Debacle

It looks like Samsung is stronger than ever, as evidenced by their quarterly forecast, which suggests a global profit of $8.8 billion, the company's highest mark in three years. Impressive, considering the spectacular failure of the Note7, Samsung's last flagship prior to the new Galaxy S8.

Samsung's exploding phone controversy was only amplified when their washing machines started exploding shortly thereafter. The recent scandal and ongoing court case involving involving Vice Chairman Jay Y. Lee didn't help the company's reputation, either, as the Samsung executive was accused of bribery, embezzlement, and ousting Korean president Park Geun-hye.

But apparently, brand loyalty runs deeper than logic, as consumers appear ready to flock back to Samsung and its newly announced flagship smartphones. On Friday, the firm announced that they had already exceeded their monetary expectations for the first quarter of 2017.

Their revenue rose 0.4% to 50 trillion Won, yielding an operating profit of 9.9 trillion won ($8.8 billion US) for the first quarter, according to Reuters. And things are only projected to get better in Q2 of 2017, as the Galaxy S8 launches this month.

The new Galaxy S8. Image by Samsung Mobile/YouTube

The Samsung Galaxy S8 and S8+ will most likely pave the way in the smartphone flagship market this year, having yielded positive feedback from critics thus far.

The latest Samsung releases were announced on on March 29 at the Samsung UNPACKED 2017 event, and was made available to preorder the following day. The devices will be available for purchase from various electronics retailers starting April 21.

The two models are almost identical, though the S8+ is larger and sports a bigger battery. The extra battery life and larger screen on the S8+ has led to an XDA-Developers report that Samsung is gearing their production ratio in favor of the larger phone. It now accounts for 45% of the total output, and this could increase further once it goes on sale.

Samsung's long-term prospects should become more apparent starting April 21, however. Do you think consumers will favor the larger screen and display, or will they surprise Samsung with a preference for a more compact device? Share your thoughts in the comments section below.

Cover image by Alana Cotton/Samsung

Be the First to Comment

Share Your Thoughts

  • Hot
  • Latest