How Samsung managed to post record profits when 2016 went up in flames

Despite a major flagship device, Galaxy Note 7, failing amid a safety scandal, South Korean electronics giant Samsung has managed to post better than expected results for Q4 2016. The company's semiconductor business, which entails its mobile chip segment in particular, posted a record quarter taking Samsung's total operating profit to 9.22tn won ($7.9bn, £6.34).

The company's chip business has a record quarter with its operating profit at 4.95tn won, which is 77% higher from the same period the year before. The company's total operating profit is nearly 50% higher than last year and its highest in over three years.

Along with the semiconductor line, Samsung Display, the company's display panel making unit also posted strong numbers owing to big OLED and large-size UHD panel shipments.

The company, which is still dealing with the Galaxy Note 7 fiasco, surprisingly had a good quarter in its mobile division as solid sales of the Galaxy S7 and S7 Edge helped its operating profit for the division rise 12% to 2.5tn won.

Despite the strong numbers, Samsung has warned of challenges for its business, in an apparent reference to the political scandal that hit the company's heir apparent Lee Jae-yong.

"The uncertain business environment such as the changing political landscape in Korea and overseas poses a challenge to the execution of mid- to long-term business strategies, such as M&A and investment decisions and developing new growth engines," the company said in a statement.