Samsung has reduced operating income in the third quarter of 2017, by 30%, to 5.2 trillion Korean won ($4.6 billion), of at least two years, stated in the financial statements of the company. Operating profit mobile units amounted to 100 billion won ($88,1 million). The group’s net profit fell 16.8% to 4.54 trillion won ($4 billion), quarterly revenues declined by 7.5% to 47.82 trillion won.
The weak results of the company are connected with the scandal with smartphones Galaxy Note 7. Initially Samsung has estimated an operating profit in July-September of 7.8 trillion won (an increase of 5.55% in annual terms), however, after the announcement of Galaxy Note 7 has lowered its forecast for net profit to 5.2 trillion won, sales to 47 trillion won from 49 trillion won.
Operating profit units Samsung in the production of mobile devices fell by 96 percent to 100 billion won, but the company expects fourth quarter counts recover to the level of 2015. Earlier, Samsung has already announced that in the fourth quarter of this year and the first quarter of 2017, expects additional losses due to the debacle of the Galaxy Note 7 in the amount of 3.5 trillion won.
“I’m not sure [the recovery] mobile business to Samsung before the first quarter of next year, said Reuters SK Securities analyst Kim Jung-Woo”.
Sale Galaxy Note 7 was launched in August 2016, but in early September, after reports about the fire smartphone during operation or charging, the company suspended sales and recalled 2.5 million devices already sold, promising to investigate the situation. Soon Samsung has started the delivery of “fixed” and Note 7, but customers continued to complain about the cases of overheating and fire devices.
11 Oct 2016 Samsung to halt sales and shut down production of the Galaxy Note 7. The company asked smartphone owners stop using it and return in exchange for compensation or a different model.
