Samsung's Profits Decrease 30% Following Note 7 Debacle

A stumble, not a fall.

The writing was on the wall for Samsung's 3Q earnings report: after the exploding-then-recalled-then-exploding again Samsung Note 7 fiasco, the company posted a 30% decrease in profits, year-over-year. Samsung achieved $4.7 billion in operating profit for Q3 2016, down $1.93 billion from Q3 2015. Revenue too declined by 30%, standing at $42.03 billion.

The firm's IT and Mobile Communications division saw sales drop 15% year-over-year, with profits falling by a staggering 95 percent to $87.8 million (down from a 3Q 2015 $1.668 billion in profits) - which still goes to show the company's mobile strength,with the profit (and costs) of the Note 7 debacle being supported mainly by strong sales of Samsung's galaxy S7 and S7 Edge devices, as well as strong growth on their Galaxy A and Galaxy J series.

That said, the report also highlights the strengths of being a technology powerhouse with a varied product portfolio. Note Samsung's profits on the mobile market, as well as their overall profit standings, and it is clear that while the Note 7 situation did give Samsung a blow that is sure to stimy the company's vision, it apparently represents nothing more than an inconvenient snag on the technology giant's roadmap.