Buoyed by Strong Chip Business, Samsung Finances Get Boost – But the Political Drama Continues
Samsung’s finances remain solid—for now—despite product mishaps and political uncertainty.
“The uncertain business environment such as the changing political landscape in Korea and overseas poses a challenge to the execution of mid- to long-term business strategies, such as M&A and investment decisions and developing new growth engines,” Samsung said in a statement.
With investigations still ongoing, several executives have been challenged by prosecutors over a scandal involving South Korea President Park Geun-hye.
Fourth-quarter profit rose 50% to nearly $8 billion, a three-year high. The company’s chip businesses in particular fared well, boosting earnings 77% year-over-year. Mobile sales were down for the third year in a row.
Samsung’s 2017 outlook remains cloudy. The company is hesitant to offer details on its next flagship smartphone and is long overdue for restructuring.