Samsung posted its earnings for Q3 2016, and it is not as pleasant as it was three months ago. For the period ending September 30, 2016, total revenue was 47.82 trillion KRW ($42.01 billion USD), a decrease of 3.87 trillion KRW ($4.57 billion USD) from this point last year. Without going too much further into the financial details (I get excited about financial results, okay?), we can all guess the reason for the decline. The IT & Mobile Communication Division is what dragged Samsung down, but its other divisions showed some good results. The Consumer Electronics Division's favorable sales in SUHD TVs and home appliances are especially of note in the report.
Looking ahead to Q4 and even to 2017, Samsung is obviously hoping to move on from the Note 7 debacle. It claims that it will increase profits by "normalizing" the mobile business while continuing to focus on its strengths in the electronics and components divisions. Even with the Note 7 cancellation, Samsung is still positive about the sales of the Galaxy S7 and S7 Edge, as well as the mid- to low-range market. It intends to use that positivity to increase profits by creating new and exciting devices, with both "differentiated design and innovative features". In short, the plan is to regain consumer confidence by bumping up QA standards and processes to produce safer devices.
Overall, the estimated total capital expenditure for 2016 is 27 trillion KRW ($23.72 billion USD), which is a record high. Another interesting bit from the report was that Samsung plans to improve earnings for its OLED business by manufacturing "flexible displays to address demand for major smartphone customers." Whatever that means, I'm excited.
- Samsung Newsroom