The fiasco cost Samsung billions of dollars.
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The secrets to its crisis-defying performance: microchips.
In addition to earnings results, Samsung unveiled a set of announcements related to the company’s corporate structure and shareholder returns.
Notably, earlier this week, Samsung claimed that the red tint was caused due to a feature in the phone and was not a hardware issue with the device.
As for the individual verticals, the Semiconductor business posted 6.31 trillion won (approx $5.6 billion) in operating profits on the back of consolidated revenue of 15.66 trillion won (approx $13.86 billion) for the quarter.
Samsung however has made a decision to turn down calls for a corporate restructuring, and has offered instead to reward shareholders by paying its first-ever quarterly dividend.
The Note 7 mishap led many to believe the company might not launch a new Note this year. The other steps involve working with specialists to retrieve heavy metals and properly recycle the device. Pricing will reportedly sit at around 700,000 won, or about $620 Dollars.
Pre-orders for the Galaxy S8 smartphone launched earlier this month managed to beat analysts’ expectations.
Net profit for the first quarter of the year amounted to 7.68 trillion won ($6.7 billion), up 46 percent from a year ago, the firm said in a statement.
The electronics manufacturer posted extremely good first-quarter earnings on Thursday, highlighting the size and diversification within the company. During the company’s first quarter financial results, the company also confirmed its plans to bring a new flagship to the market.
Samsung is still facing some acute headaches.
The Galaxy S8 smartphones has gotten favorable initial reviews, though some consumers complained that the screen appeared to have a pink hue.
Samsung Electronics said it decided not to change the company’s structure into a holding company. And, while there are obvious risks around the ongoing trial of Jae-Yong, the stock markets continue to rise and momentum remains firmly behind Samsung’s own stock. A smaller, 3200mAh battery will be included over the previous 3500mah cell found in the original Note 7.
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Samsung stopped production of the Note7 in October after complaints that the phone batteries had in some cases overheated and even exploded. The South Korean company also said it had decided not to adopt a holding company structure, rejecting demands from USA activist hedge fund Elliott Management. The unit’s operating margin was 40.3 percent, more than doubling 19.6 percent for Samsung’s overall margin. However, it is believed that the smartphones will be renamed as the Galaxy Note 7 R, to indicate that they are refurbished units.
