Galaxy Note 7: Samsung expects a decline in its income – The Figaro

Samsung has estimated Friday that the crisis related to its Galaxy smartphones Note 7, which explode dampen about three billion dollars of its operating income over the next two quarters, hoping that the increase in sales of its other mobile feature will cushion the shock. This warning on results falls two days after the announcement by the giant south Korean electronics a drop of a third of its forecast operating profit for the third quarter, already linked to the fiasco of the Galaxy Note 7, the subject of a disastrous operation reminder, before finally being abandoned.

The production of the Galaxy Note 7 had been halted Tuesday, two months after its launch, due to defects that could cause the explosion of which would have had to be a product state of the art. The world’s leading manufacturer of smartphones, was also ordered Tuesday all distributors to stop selling the device in question. Samsung has finally confirmed the complete failure of this product by calling the millions of people who had purchased in the world to turn it off, as a safety measure – a measure that is devastating for the image of a company that prides itself on the quality of its products in leading-edge technologies.

In addition to its losses in the third quarter, Samsung believes that the decision to stop the Galaxy Note 7 will continue to reduce its profit margins during the period October to march, which includes the period of the festivals of end of year crucial to its sales.
”The negative impact is estimated to be between 2,000 and 3,000 billion won (1.8 to $ 2.6 billion) for the fourth quarter of 2016, and to about 1,000 billion won (884 million dollars) for the first quarter of 2017″, said on Friday the giant south Korean electronics, in a press release. “Samsung Electronics intends to standardize its mobile activities in increasing the sales of flagship models, like the Galaxy S7 and the Galaxy S7 Edge,” according to the same document.

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