-
Published on Oct 12, 2016
'갤노트7 손실 반영' 삼성전자 3분기 영업익 5조2천억으로 수정
Samsung Electronics has slashed its quarterly earnings estimates... by a third.
The tech giant's unprecedented decision to completely halt production of the fire-prone Galaxy Note 7 has dealt the company a massive blow.
Samsung Electronics has slashed its quarterly earnings estimates... by a third.
The tech giant's unprecedented decision to completely halt production of the fire-prone Galaxy Note 7 has dealt the company a massive blow.
Kim Min-ji has the details.
It wasn't better than expected after all -- Samsung Electronics revised its earnings guidance for the third quarter to reflect losses from its ill-fated Galaxy Note 7.
The tech giant expects an operating profit of 5-point-2 trillion won,... or roughly 4-point-6 billion U.S. dollars,... for the July to September period.
That's down from the estimate of 6-point-9 billion released last week.
Sales were also revised down to just under 42 billion dollars.
Based on the new estimates,... Samsung's operating profit is down about 30 percent from a year ago,... while sales are down over nine percent.
The revision comes just a day after the company announced that it will end production of the Note 7 -- in effect announcing it will discontinue the troubled flagship phablet.
The decision came after reports of at least nine replacement handsets catching fire,... with incidents occurring mainly in the U.S.
An investigation is underway to find the exact cause of the reported fires,... and results could be out as early as this week.
"The Note 7 -- they used the edge design for the first time, and the curve is a bit different from the S7 Edge. It leaves less space for components packed into the device and I think that caused complications unknown."
The global recall itself is expected to cost the tech giant up to 2 billion dollars,.. but damages could be greater given the impact it may have on other Samsung products.
Nomura says the ditching of the Note 7 could result in a loss in sales worth some 9-and-a-half billion dollars,... and over 5 billion in profit.
Although that's a big loss for Samsung,... the general consensus is that the company probably made the right decision.
As Samsung is expected to launch the Galaxy S8 in February next year -- the move is actually seen as a strategy to minimize the impact on the new phone, thus preventing the issue from dragging on to next year.
Analysts say Samsung's focus will now be to use this as an opportunity to start fresh,... and work even harder on the quality and safety of its new models to come.
Kim Min-ji, Arirang News.
No comments:
Post a Comment