Published on January 26th, 2017 | by The GC Team0
Samsung Q4 and full-year 2016: CE division profits decline
For the final quarter of 2016 Samsung Electronics has posted KRW53.33 trillion in consolidated revenue and KRW 9.22 trillion operating profit.
For the full year 2016, revenue was KRW 201.87 trillion and operating profit KRW 29.2 4 trillion.
The company said fourth quarter earnings were “driven by the components businesses, mainly the Memory business and the Display Panel segment, which manufactures OLED and LCD screens.” Strong shipments of OLED and large-size UHD panels “contributed to profitability.” The stronger US dollar against the Korean Won also “had a positive impact on operating profits.”
The Consumer Electronics division, including the Visual Display and Digital Appliances businesses, posted KRW 13.64 trillion in consolidated revenue and KRW 0.32 trillion in operating profit for the fourth quarter – an earnings decline suffered “despite increased sales of premium TVs including SUHD and curved TVs.” The company said it was able to strengthen market share in the premium segment “led by promotional sales in the year-end peak season.”
Looking ahead into 2017, the company says it will expand its premium lineup, including the newly-introduced QLED TV. For display panels, earnings from high-end flexible OLED are expected to increase year-on-year due to an expansion in supply, and Samsung expects to meet stronger competition in the LCD market with value-added products focusing on UHD and large-size TV panels.
The Mobile business, widely expected to suffer heavily from the withdrawal of the Note 7 in the second half of 2016, registered year-on-year gains as “solid sales” of flagship mobile products such as Galaxy S7/ S7 edge continued, together with improved profitability of mid-to-low end models.
For Mobile in 2017, the company says it will “continue to innovate both in software and hardware across its entire line-up and prioritize consumer safety.”
Although the growth of the global smartphone market is expected to slow this year, new services such as artificial intelligence (AI) will be a differentiating factor. Samsung’s mobile business “will seek to strengthen its leadership in the premium market and boost competitiveness of mid-to-low end smartphones by adding innovative features available in high-end models.”