Samsung Galaxy S8 sales surge pushes profits to three-year high

Battle-weary Samsung are celebrating after their Note 7 failure as the new Galaxy S8 helped profits to the best level since early 2013.

The South Korean firm predicted a strong quarter in a January trading statement but were delighted that Q4 profits reached expectations.

Samsung faced widespread criticism of its Galaxy Note 7 phablet when users posted Youtube videos of the device catching fire under charging. The debacle cost the tech giant millions in lost revenue, analysts said.

But booming sales of OLED flatscreen TVs and smartphone memory chips helped lift operating profit from January to March 2017 to 9.2 trillion won (£6.2m).

On the back of the news, Samsung shares leapt 17 per cent.

The growing demand for NAND flash chips used for long-term data storage is expected to keep Samsung profits buoyant, analysis by Reuters shows.

And the March 29 launch of the Galaxy S8 should keep Samsung on track for a strong 2017.

It’s not all sweetness and light, however. Samsung are locked in multiple patent-infringement lawsuits with their Korean rivals Huawei. The Chinese High Court are considering these lawsuits and when they rule later in the year, these record shares could sink fast.