After the release of Galaxy Note 7, Samsung faced a lot of problems. The phone, needless to say, had a lot of flaws that ate into the profits of the company. To be precise, the company has been making loses close to $5 billion, spread across many quarters.

In spite of this flaw and the millions lost, Samsung has managed to post an impressive operating profit which is the best that the company made in the last three years. How did Samsung manage to pull this cat out of the hat?

According to reports published by the company, it made an overall fourth-quarter profit of 9.22 trillion won. This is contributed as customers bought a lot of memory chips and display panels from the company reported CNET.

With a closer look, it is evident that Samsung is managing to make profits from the demand that has increased for the components of mobile phones, television sets and other devices that it manufactures. One should not forget the fact that even though Samsung is one of the market leaders when it comes to mobile phones and television sets, it also has a huge components business. It does seem that this business will continue to grow too, reported Yahoo.

Samsung is the world's largest vendor of memory chips. After Intel, it stands second in the world when it comes to the list of processor makers. The company not only makes processors for its own use but also caters to other companies like Qualcomm.

The operating income for Samsung's semiconductor business soared 77 percent in the fourth quarter. Samsung said that in the mid- to long-term it expects the shift in the tech industry to focus on the internet of things, artificial intelligence and automotive to boost its components business.

In the fourth quarter, the operating income for Samsung's semiconductor business increased by 77 percent. The company stated that it expects a shift in the tech industry to focus on the Internet of things, artificial intelligence and automotive to boost its components business.

Even with the profits that the company is making with its components business, Samsung has warned that it will have a slip in the overall earnings in the first quarter due to the slip in the mobile business. Not only did the sales dip, the mobile segment has higher marketing costs that the company must bear.

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