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Samsung losses due to the withdrawal of the new smartphone can rise to $5.3 billion

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Samsung losses due to the withdrawal of the new smartphone can rise to $5.3 billion

Samsung losses due to the withdrawal of the new smartphone can rise to $5.3 billion
October 14
16:00 2016

On Friday Samsung Electronics Co Ltd has sent a message that in the next 2 quarters the company expected losses in operating profit, totaling approximately to $ 3 billion. These losses are due to the suspended production of the potentially flammable smartphone Galaxy Note 7.

According to the forecast, in general, Samsung will lose about $ 5.3 billion due to the withdrawn product. The company, which is a world leader in the smartphone market, two days earlier reported that in the III quarter the losses would be equal to $ 2.3 billion.

This week the company was forced to stop the production of the latest model of the gadget after its 2-month sales. Galaxy Note 7 was going to become a major competitor to the latest iPhone from Apple Inc. The reports of the ignition of the apparatus have become the reason for the suspension of the production.

Samsung Electronics said it was waiting for a negative impact on the profit in the I quarter of the coming year in the range of 2 trillion KRW for the period from October to December and  in the amount of about 1 trillion KRW (equivalent to US $ 900 million).

Samsung is planning to increase sales of Galaxy S7 and S7 edge in order to compensate the loss of profits. Also, the company intends to significantly revise the quality control processes in order to make products safer.

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