Samsung may have stumbled during the second half of 2016 with the battery issues that plagued the Galaxy Note 7. Interestingly enough though, it didn’t seem to have much of an effect on the company’s profits for the last quarter of the year.
Naturally, they could have made more if the Note 7 didn’t have its issues, but Samsung’s recent earnings guidance said they were able to bring in $7.8 billion in operating profit for the quarter (which is up by around 50% YoY).
Samsung was able to keep things going thanks to their other divisions, on top of a refreshed focus on the Galaxy S7. We saw the Galaxy S7 take part in multiple promotions throughout the year, and Samsung even released the device in new colors as well. So to help keep the momentum going, Samsung is going to be betting heavy on the upcoming Galaxy S8. A recent report claims they’re going to start with an initial output of 10 million units.
The report says 5 million units will be produced in March, followed by another 5 million units in April. They believe that once Samsung has finished with this second batch, the company will launch both of them simultaneously around the world. This might sound like a lot for some companies, but etnews says that Samsung’s initial output of the Galaxy S7 was also 10 million units, so it shouldn’t be hard for the South Korean tech giant to produce, distribute and sell this many.
The big question is whether or not Samsung will be able to win back customers they lost thanks to the Note 7 issues. The company tells us that the majority of the devices they recalled were simply swapped out with another Samsung device, but there has to be a segment of the community that is worried about safety with the Galaxy S8. Another report said Samsung SDI will be producing batteries for the S8, and that the company has put a bigger emphasis on safety this year.
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