The Note 7 Fiasco Continues

galaxy-note7

galaxy-note7Samsung said the Note 7 fiasco would continue to hurt the company’s profit until next year as it has done to the Q3 profit of the company. The company said in a statement that the fourth-quarter influence on Samsung Electronics’ effective profit will be “in the mid-2 trillion Won range” which is about $2.2 billion. The company further added that the damage would continue until the first quarter of next year influencing about 1 trillion Won. The production of Note 7 is permanently stopped by Samsung recently. The sold units were been recalled as some of the devices are destroyed by fire and explosion and some replacement units were sent out. However, unfortunately, those devices have retained the problems.

 

To enhance the safety of its customers the company said on Friday that it would make significant changes to its quality assurance process. The company will normalize the smartphone business by expanding sales of other high-end phones for instance Galaxy S7 and S7 Edge. However, they have not released the report about how the sales will be affected by the Note 7 incident. Samsung did, however, announce that the Note 7 incident will cut a 2.6 trillion Won from the operating profit of third quarter that is 7.8 trillion Won.