• $
  • €
  • ₽
  • ₺
  • £

Samsung expects another $3 billion hit to profit from Note 7 failure

Samsung expects another $3 billion hit to profit from Note 7 failure
14.10.2016 12:01
Samsung Electronics Co Ltd (005930.KS) on Friday said it expects to take a hit to its operating profit of about $3 billion over the next two quarters due to the discontinuation of its fire-prone Galaxy Note 7 smartphone, Reuters reported.

The South Korean tech giant said in a statement it expected the blow to profit to be in the mid-2 trillion won range in the October-December period and about 1 trillion won ($900 million) for the first quarter of 2017.

The outlook brings to more than $5 billion the total losses the global smartphone leader has forecast as a result of the overheating issues, after it said on Wednesday it would suffer a $2.3 billion hit to third-quarter profit.

The premium device that was meant to compete with Apple Inc's (AAPL.O) latest iPhones at the top end of the smartphone market had to be scrapped earlier this week less than two months after its launch.

To make up for the lost revenue, Samsung said it would expand sales of products such as the Galaxy S7 and S7 edge phones.

"Additionally, the company will focus on enhancing product safety for consumers by making significant changes in its quality assurance processes," the firm said in a statement.

Shares in Samsung, which have fallen about 8 percent this week on news of the withdrawal of the Note 7, edged up 0.8 percent in early trade.

www.ann.az
Youtube
Go
Similar news
Similar news
Central Bank of Azerbaijan Releases Official Exchange Rates for October 23
Business 11:00
Central Bank of Azerbaijan Releases Official Exchange Rates for October 23
Natural Gas Futures Drop on New York Mercantile Exchange
Business 10:30
Natural Gas Futures Drop on New York Mercantile Exchange
Brent Climbs Above $113, WTI Tops $100
Business 10:00
Brent Climbs Above $113, WTI Tops $100
Abortion Rates in Azerbaijan Rise 21.9% in 2025, Statistics Committee Reports
Business 16:59
Abortion Rates in Azerbaijan Rise 21.9% in 2025, Statistics Committee Reports
Armenian Deputy PM Visits Syunik for Trump Route Infrastructure Planning
Business 14:30
Armenian Deputy PM Visits Syunik for Trump Route Infrastructure Planning
Azerbaijan Sets Target for Transition to Electric Stoves in Residential Buildings
Business 14:00
Azerbaijan Sets Target for Transition to Electric Stoves in Residential Buildings
Brent surges to $110.84, WTI reaches $98.64
Business 13:00
Brent surges to $110.84, WTI reaches $98.64
Azeri Light crude climbs to $119.70 per barrel
Business 12:30
Azeri Light crude climbs to $119.70 per barrel
Gold drops to $4,106 per ounce on COMEX
Business 12:00
Gold drops to $4,106 per ounce on COMEX
Anews TV

Our official Youtube channel

Subscribe