SEOUL, Oct 14, (APP/AFP) – Samsung on Friday said the crisis over its exploding Note 7 smartphones would cost another $3 billion-plus in lost profit over the next two quarters, but hoped expanded sales of its other flagship handset would help cushion the impact. The profit warning came two days after the South Korean electronics giant slashed its operating profit for the third quarter by $2.3 billion. After a recall problem with the large-sized Galaxy Note 7 turned into a full-blown crisis, Samsung announced earlier this week that it was scrapping the model entirely — a devastating move for a company that prides itself on the quality production of cutting-edge technology. On top of the third-quarter loss, Samsung said the drop in sales arising from the decision to discontinue the Note 7 would continue to impact profit margins in October-March — including the crucial holiday buying season. It estimated an operating profit loss in the fourth quarter at around the “mid-2 trillion ($2.2 billion) won range” and 1.0 trillion won for the first quarter of 2017.
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Samsung sees further $3bn profit hit from Note 7 crisis
