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Samsung Electronics has worsened the profit and revenue forecast for the quarter

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Samsung Electronics has worsened the profit and revenue forecast for the quarter

Samsung Electronics has worsened the profit and revenue forecast for the quarter
October 12
15:00 2016

One of the world’s leading electronics manufacturers, South Korea’s Samsung Electronics, has reduced its profit and revenue forecasts for the III quarter of this year. It should be noted that on the eve the Company reported that it had completely stopped the production of the flammable smartphones Galaxy Note 7.

The company has lowered the forecast for its operating profit for the period from July to September. The revenue forecast has amounted to 5.2 trillion KRW ($ 4.62 billion) from 7.8 trillion KRW. The profit forecast has been decreased to 47 trillion KRW from 49 trillion KRW. The securities of the Samsung Company have fallen in price by 0.7% on October 12. A day earlier their value decreased by 7%. Due to this the company’s capitalization has shrunk by $ 7 billion.

Galaxy Note 7 was presented by the South Korean technological giant in August. The gadget went on sale on 19 August in South Korea. The smartphone was evaluated as one of the best phones with Android OS. The rival of the phone was supposed to be iPhone 7 by Apple Inc.

But in September Samsung was forced to stop sales of the new smartphones worldwide due to the fact that the company began to receive information about the ignition of the phones. Also, the company had to withdraw several million gadgets that had already been bought by the consumers. Major airlines banned to use smartphones Galaxy Note 7 on board their aircrafts as well as to leave them in the luggage.

Samsung pledged to give updated phones to their users instead the faulty ones. The new gadgets supposed to have a serviceable battery. But because of the new cases of the phones ignition, the company was forced to completely stop the production and sales of the gadgets.

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