Samsung’s Profit Engines Keep Running Even Amid Note 7 Recall
- Recall of exploding phones overshadowing turnaround effort
- Activist investor group pushing for breakup of company
Samsung Profit Tops Estimates Despite Note 7 Recall
Samsung Electronics Co. might be grappling with the fallout from its exploding Note 7 smartphones, but as a key supplier of displays and memory chips, the South Korean company showed it can rely on other phone makers and PC manufacturers to drive sales and profit.
The recall of the defective devices has dominated headlines since it was announced last month, and Samsung has worked to contain the fallout and insulate its component businesses. That helped maintain growth as new devices from rivals stoke demand for components. While Samsung appears to be remain on a firm footing amid the crises, a new challenge emerged this week when billionaire activist Paul Elliott Singer started a campaign to get the family-controlled company to restructure.