Samsung’s Q4 profits double despite Note7 battery fires and investigation against chief
The company made $6.1 billion (around Rs 41,532 crore) during the period, its highest in three years.
Samsung Electronics on Tuesday reported a 50% jump in their fourth-quarter operating profit. The $6.1-billion (around Rs 41,532 crore) profit was its highest in three years, Reuters reported. It also made its record profits because of massive memory chip earnings. These figures were despite the technology giant’s reputation being marred by its Galaxy Note7 fiasco, and the company’s chief Jay Y Lee being mired in allegations of corruption.
The Galaxy Note7 had been recalled after several handsets had caught fire. After an investigation, the company had confirmed that the fires were caused by a battery fault. Samsung had also announced tighter quality controls and more rigorous testing for its phones. It had also delayed the launch of its next phone – the Galaxy S8. The company normally launches its Galaxy S series in February every year.
Samsung chief Koh Dong-jin said the company would be working hard to regain consumer trust. “The lessons of this incident are deeply reflected in our culture and process,” he said.
The company’s record profit came after it reported its worst operating profit in eight years when it recalled the Note7 and stopped its production. Its profit for that quarter had declined by 96%.