Samsung unscathed by Note 7 burn; predicts highest profit in three years

Samsung has posted record profits in the fourth quarter, despite suffering from a major financial setback dealt to it by the Galaxy Note 7 fiasco.

Samsung said it expects to post a quarterly profit of around 9.2 trillion won in Q4 which is more than it recorded in any quarter in the last three years.

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While Samsung expected to create new records in the smartphone industry with the Galaxy Note 7, the loss of the device equally affected the company, resulting in a loss of $4.4 billion. However, the company has responded admirably following the fiasco and will post an estimated record quarterly profit in the last three months of 2016. This bodes well not only for the company's upcoming flagship phones but also for its various component divisions which have played a major part in the company's revival.

According to Gartner, Samsung sold a little more than 71 million smartphones in Q3 of last year, 12 million fewer than those sold in the same period of 2015. Samsung's market share also fell from 23.6% to 19.2%, impacting the company's dominance significantly. However, the company's revival took place not only because its components division did well, but also because Samsung aggressively pushed sales of the Galaxy S7 and S7 Edge phones across the world with free Gear VR headsets or major discount offers.

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According to recent reports, Samsung has won the contract to supply OLED display panels for Apple's iPhone 8 and iPhone 8 Plus handsets. Samsung has also tied up with Qualcomm and has allowed the latter to use its revolutionary 10nm based FinFET technology in the new Snapdragon 835 smartphone processor. Samsung's other components have also performed well as a whole and their success has allowed the company to overcome the losses inflicted by the Note 7 fiasco.

Samsung is also aiming to dominate the mid-range smartphone market amid stiff competition from Chinese rivals Huawei and OnePlus. The company recently launched two new Galaxy A-series smartphones which sport attractive features like curved display, metal and glass unibody, fingerprint sensors and improved processing power, storage and memory. The success of A-series and J-series handsets will allow the company to dominate the global smartphone market even if phones like Galaxy S-series or Note series ones disappoint in terms of sales.

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