Seoul, Korea, Oct. 14, 2016. – Samsung Electronics estimated the impact of discontinued Samsung Galaxy Note7 sales on operating profit in the fourth quarter of 2016 and first quarter of 2017 at about 3 trillion Korean won $2.67 billion .
Samsung Electronics estimated the impact of the Samsung Galaxy Note7 smartphone withdrawal in the fourth quarter of 2016 and the first quarter of 2017 at 3 trillion Korean won $2.67 billion
The company has already allocated the projected direct costs from the Samsung Galaxy Note7 discontinuation in its updated third-quarter financial results report, filed Oct. 11, 2016. However, the company expects the decline in revenue from the sales halt to affect operating profit over the next two quarters.
The financial impact in the fourth quarter of 2016 is estimated to average 2 trillion Korean won $1.78 billion , and about 1 trillion Korean won $889 million in the first quarter of 2017.
Going forward, Samsung Electronics plans to normalize the Mobile division’s performance by expanding sales of flagship smartphones such as the Samsung Galaxy S7 and Samsung Galaxy S7 edge.
In addition, the company will focus on improving product safety for users by significantly changing its quality control processes.
What kind of losses did Samsung incur after discontinuing the Galaxy Note7?
What factors contributed to the significant losses incurred by Samsung after discontinuing the Galaxy Note7?
What were the main factors leading to Samsung’s estimated losses after discontinuing the Galaxy Note7? How does this situation reflect the growing importance of smartphones in our daily lives, and the potential risks associated with their use?