After 3 years of dwindling profits, Samsung is preparing to release its highest quarterly profit on Friday. Investigators say that a hike in memory chip sales have counteracted the misstep of the flagship smartphone.
After customers complained that the Galaxy Note 7 phones were exploding in flames, Samsung took them off the market. The South Korean firm warned of a $2.1 billion dent in its profits for the fourth quarter of 2016 as a result of worldwide lost sales and recalls.
Despite the blunder, investors are confident that some of their newer products such as the memory chip will assist in elevating profits throughout 2017.
The price of memory chips has increased as demand grows for extra firepower on mobile devices. It has been the sales of the 3D NAND chip that have assisted Samsung in its profit increase. Analysts say that Samsung is at the forefront of these sales as competitors such as SK Hynix and Toshiba Corp lag behind.
Investment company Eugene investment claim that the increase in demand for chips will lead to higher profits throughout 2017.
Park Jung-hoon, fund manager for HDC Asset Management predicts that the Samsung operating profit will be somewhere in the range of $30 trillion in 2017.
The most recent quarter reflects that Samsung is starting to make a comeback after the disastrous sales in the third quarter due to the Galaxy S7 and the S7 edge.
Other companies such as Hyundai Securities predict an operating profit for the Samsung mobile division to hit 2.2 trillion won.
This week Samsungs shares were at an all time high of 1.831 million.
There was a 43 per cent surge in 2016 – the highest since 2012. Indicating that investors were not expecting Samsung to recover after the smearing of their reputation through a political scandal.