SMARTPHONE WORLD! Samsung expects further profit hit from Note 7 fallout

SMARTPHONE WORLD! Samsung expects further profit hit from Note 7 fallout


Samsung expects additional setbacks to its profits from the withdrawal of the Note 7 mobile, saying revenue will be changed in the first quarter of 2017.

The tech giant had revised down its third quarter earnings guidance.

On Friday, it said it expected an additional negative impact of around 3tn won ($2.7bn, £2.2bn).

The Note 7 was recalled after battery fires, but when replacement mobiles experienced the same trouble, the device was trashed by Samsung.

The premium mobile, found in August, was supposed to compete with Apple’s new iPhone 7 at the top end of the smartphone market.

The revised outlook brings to more than $5bn the total losses the world’s biggest smartphone manufacturer says it anticipates as a result of the Note 7 fiasco, after it said on Wednesday it would endure a $2.3bn success to third-quarter profit.

The firm said that so as to “normalise its cellular telephone company”, it’d expand sales of its other main apparatus, such as the Galaxy S7 and S7 Edge.

“Furthermore, the firm will focus on improving product safety for consumers by making critical changes in its quality assurance processes,” Samsung said in a statement.

In September, the company recalled about 2.5 million Note 7 apparatus after criticisms of overheating and bursting batteries.

It later insisted that all replaced apparatus were safe. Nonetheless, that was followed by reports that those cellphones were catching fire too.

On Tuesday, the firm said it would forever cease production of the unit and urged owners to turn it off.