The costly Galaxy Note 7 debacle, which led to the recall of about 3 million smartphones because of overheating batteries, seems to be behind Samsung Electronics, with the company forecasting a 48 percent growth in operating profit in the first quarter.
Samsung has not had a new flagship smartphone on the shelves ever since it in October after replacement phones shipped by the company were also found in some cases to have . The company now has its hopes for the high-end of the smartphone market pinned on the new Galaxy S8 and S8+, which are expected to reach shelves later this month.
The company’s components business, consisting of display panels and memory chips, is likely to have helped boost the company’s profit in the first quarter.
The South Korean company said Friday it expects its operating profit in the first quarter was 9.9 trillion won ($8.8 billion), up 48 percent from 6.7 trillion won in the same period last year. Samsung said in its earnings guidance that it expects revenue will remain flat at around 50 trillion won for the quarter from 49.78 trillion won in the same quarter a year ago.
in February on charges of bribery, in connection with an investigation into an alleged corruption scandal that led to the ouster of South Korea’s former President Park Geun-hye. Lee is largely seen as the de-facto leader of the Samsung Group, running the business on behalf of his ailing father, Samsung Chairman Lee Kun-Hee.