Samsung Electronics said its fourth-quarter profit is set to have jumped 50% from a year earlier to its highest level in more than three years.

The figure was better than expectations and came on the back of strong chip sales and a smartphone rebound. 

The upbeat outlook comes despite a slight fall in revenue and the anticipated $2.1 billion profit hit from the withdrawal of the fire-prone Galaxy Note 7 premium smartphone in October. 

The guidance points to a more rapid recovery for the mobile business than many analysts had anticipated after one of the biggest product safety failures in tech history.

It also reflects steady price increases for memory chips. 

The South Korean technology giant said its operating profits for the three months from October to December was set to reach 9.2 trillion won ($7.8 billion).

This would mark the highest level since the third quarter of 2013 and well above the 8.2 trillion won tipped by a survey of 21 analysts. The estimate was also higher than any individual forecast in the survey.

The South Korean won's recent depreciation may have helped boost profits, some analysts said, as component sales are typically settled in US dollars. The local currency fell 8.8% against the dollar in the fourth quarter. 

Investors pushed Samsung shares up 43% last year, betting the surge in demand for memory chips and organic light-emitting diode screens for smartphones will more than make up for the Note 7 setback and translate to strong earnings growth. 

The world's biggest maker smartphones, TVs and memory chips will not disclose detailed earnings, including the performance of its individual businesses, until late January. 

Analysts expect Samsung's chip division to earn a record of more than 4 trillion won in operating profit in the quarter thanks to strong demand from smartphone makers, including major client Apple, and high-end data storage products. 

The mobile division's quarterly profit is also expected to rebound from the third quarter, when the firm booked the bulk of its Note 7 losses, and post its first annual gain in three years thanks to healthy sales of Galaxy S7 smartphones. 

Samsung Electronics said fourth-quarter revenue is set to fall by 0.6% from a year earlier to 53 trillion won.