Samsung raises its earnings despite the withdrawal of the Galaxy N7 – Milenio.com

Samsung Electronics dampened the fears of the analysts to record an increase of 5 per cent on their profits quarterly, the solid sales of components were able to compensate for a costly recall of its flagship phone Galaxy Note 7.

In recent weeks, the group of technology of South Korea struggled to contain the effects of increased withdrawal of mobile phones in the history of the industry, after it burned down a few batteries in your smartphone of the latest generation, so they had to replace 2.5 million units. On Wednesday, concerns increased, as the substitute model of the phone, Note 7, supposedly with the battery fixed, it began to emit smoke aboard an airplane in the US, suggesting that maybe Samsung was not able to find the solution of the problem.

The news that the battery is incendiaba came just as the largest manufacturer of mobile phones in the world was back, with large sales of phones in the first half after two years of falling profits and loss of market share.

All the analysts reduced their estimates for the profits of Samsung in the third quarter after the announcement of the withdrawal of products at the beginning of September. But on Friday, Samsung said its operating profit preliminary for the period of July to September was 7.8 trillion won, an increase of 5.6 percent compared with the same period of the previous year, despite the projected fall in sales of 5.2 percent.

"The strong profits of the operations of semiconductors and screens helped to compensate for the problems by the retirement of the Note 7," explained Kim Young-woo, an analyst of SK Securities. "In general, the rate of growth of the company remains intact, despite the problem of the withdrawal of the products".

On the earnings guidance from Samsung has not released the cost of recalls of products Galaxy 7, as the company does not provide detailed figures of the results by each business division. However, analysts estimate that the product recall will cost over a billion dollars in total, and was told that a part.