Samsung announced its Q3 2016 earnings yesterday, and they were pretty much as expected. The Korean tech titan confirmed revenue of 47.82 trillion Korean won ($41.8 billion), with operating profits hitting 5.2 trillion Korean won (around $4.6 billion). This represents a year-on-year (YoY) drop of 3.87 trillion won ($3.4 billion) and 2.19 trillion won ($3.4 billion), respectively, and equates to a YoY fall of 34 percent.
The figures are pretty much in line with the revised earnings forecast Samsung issued a couple of weeks back, shortly after confirming it was killing its flagship Galaxy Note7 smartphone due to a recurring issue with handsets catching fire. The Note7 disaster led to the Korean tech titan cutting its original earnings forecast for the quarter by a third, with the company’s stock falling by 7.5 percent.
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Last month, Samsung announced that it planned to divest its printing business to HP for around $1 billion, and shareholders have now given their approval ahead of the planned spin-off on November 1, according to the Korea Herald. “The decision was made in the context of Samsung Electronics’ commitment to an on-going reorganization of business units in order to further concentrate on core competencies and to maximize competitiveness,” said Samsung CEO Oh-Hyun Kwon, in a statement. “Going forward, the Company will continue along this path of focusing on what it does best.”
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Samsung’s push to give its vice chairman, Jay Y. Lee, a place on the board was also approved. “Mr. Lee’s election to the Board will allow him to more actively participate and take formal responsibility in the Company’s important decision-making, contributing to creating long-term, sustainable value for all of our stakeholders,” added Kwon.
Related to Samsung’s earnings news, IDC announced yesterday that overall smartphone shipments were up by 1 percent in Q3 2016, though Samsung’s market share lead over Apple shrank by 3.3 percentage points, due to the Galaxy Note7 fiasco.
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