Forget a Note 7, Samsung is creation large profits

Samsung has emerged from a remains of a Galaxy Note 7 debacle in flattering good shape.

The South Korean tech hulk reported quarterly distinction of 9.2 trillion won ($7.9 billion) on Tuesday, adult 50% from a year progressing to a top turn in 3 years.

The fender gain prominence Samsung (SSNLF)‘s ability to shrug off a $5 billion distinction hit it took from murdering off a fire-prone Note 7. It’s strength comes from a perfect scale — not only in smartphones themselves, though in a tools out of that they’re made.

Even Samsung’s mobile division, that was scarcely dragged into a red by a Note 7 predicament in a prior quarter, requisitioned a 12% distinction boost in a latest news as other smartphones like a S7 sole well.

Related: Samsung blames batteries for Galaxy Note 7 fires

On Monday, a association took a vital step toward relocating on from the annoying affair. It announced a formula of investigations into what caused some of a Note 7 phones to locate fire, blaming defects with batteries from dual suppliers and surveying stairs to forestall a identical failure from function again.

Samsung is a world’s largest smartphone maker, though a infancy of a company’s increase now come from offered components like semiconductors, memory chips and arrangement screens. Competitors like Oppo, LG (LPL) and Dell (DVMT) use Samsung tools in phones, televisions, and laptops.

The South Korean company’s products are even found in Apple (AAPL, Tech30) devices. When Samsung’s code picture and smartphone increase were taking a beating from a annoying Note 7 recall, it was still pulling in income subsequent from iPhone 7 sales.

Related: Apple sues Qualcomm for scarcely $1 billion

Samsung’s strength is that it’s “leading in terms of record and determining a satisfactory volume of a supply chain,” pronounced TuanAnh Nguyen, mobile phone researcher with Canalys.

The association will recover a flagship Galaxy S8 in a entrance months, a pivotal exam of consumers’ trust in a tarnished brand. While fans speculate over a smartphone’s design, what’s on a inside is also critical for Samsung’s bottom line.

Popular U.S. chip builder Qualcomm partnered with Samsung to rise a latest processor, a Snapdragon 835. The most lauded chip will entrance in a Galaxy S8 and is approaching to be in opposition inclination entrance out after in a year.

Premium smartphone makers are also expected to be branch to Samsung as they change to a new form of screen, famous as OLED. Samsung controls 90% of a OLED market, according to Nguyen.

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