Samsung sees 2016 profit jump despite Note 7 debacle

The company sees AI as a key differentiator for its smartphones in 2017

Samsung Electronics said its profit rose almost 20 percent in 2016 despite nearly flat sales and the costly recall of the Note 7 smartphone.

The company reported an annual net profit of 22.7 trillion won (US$19.5 billion), up 19.2 percent, on sales of 201.9 trillion won (US$173.5 billion), up just 0.6 percent.

Samsung saw some of its biggest sales gains in memory chips on the back of strong demand from smartphone makers. The company is one of the world's biggest memory chip manufacturers.

The mobile division saw sales fall 3 percent in 2016 to 97.8 trillion won. It's Samsung's biggest division by sales and was hit by the recall of the Note 7 smartphone and slowing demand for high-end phones.

A day earlier, Samsung divulged that battery problems were to blame for the fires and explosions that led to the massive recall. It said batteries from two manufacturers suffered from internal problems that caused a short circuit and fire.

Looking ahead, Samsung said it expects the smartphone market to slow down while artificial intelligence services present a new business opportunity. To date, Samsung handsets have featured Google's AI personal assistant, but the company reportedly is developing its own assistant.

Samsung also signaled that it plans to boost the competitiveness of its mid-to-low-end smartphones by adding features that were previously only available in more expensive models.

In the consumer electronics business, sales barely rose but profit more than doubled to 2.6 trillion won. Samsung said it sees high-end QLED televisions and large-screen 4K televisions as key to growth in 2017. It will also attempt to expand the business-to-business side of its home appliance division.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags samsung

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?