Melting Note 7 did not stop Samsung making a killing
The Tame Apple Presses campaign to get its iPhone 7 selected over the Samsung Note 7 has failed to damage Samsung’s bottom line.
Since the iPhone 7 was launched the Tame Apple Press has been running scare stories about the Note 7 and over reacting to a battery problem which cased half a dozen to over heat. Samsung recalled the Note 7 and replaced the battery and the Tame Apple Press rubbed its paws with glee claiming that Samsung would suffer a billion dollar loss from having to recall the phones.
It turns out that did not happen.
Samsung said that it expects third-quarter profit to grow 5.6 percent, beating estimates, as a pickup in chip and display earnings off set its smartphone woes.
The world’s biggest smartphone maker said its operating profit for July-September was likely $7 billion, compared with the 6.4 billion tipped by a Thomson Reuters StarMine SmartEstimate of analysts’ forecasts. A year earlier operating profit was just under $7 billion
Revenue for the quarter likely fell 5.2 percent the South Korean firm said. This was much less than the Tame Apple Press predicted.
Samsung’s semiconductor business did really well, ironically flogging its chips for the new iPhones and other products launched ahead of the peak year-end sales season.
The Note 7 problems could also boost Samsung’s chip business. Industry executives say the sudden need for chips in 2.5 million replacement phones is exacerbating already tight memory market conditions, which could push prices higher.
Paul Romano, chief operating officer at U.S.-based electronic component distributor Fusion Worldwide, said the firm’s clients, which include Samsung, are currently having a harder time procuring memory chips. Some smartphone makers are also trying to secure more of the chips as they see an opportunity capitalize on Samsung’s mis-steps and boost handset sales, Romano said.