Samsung Profits Sinks After Note 7 Debacle

Smasung has posted its Q3 2016 financial reports. It’s been for the first time in the past two years that Samsung has posted lowest earnings. Analysts are saying that these earnings are the direct reflection of the Note 7 debacle.

Overall revenue was down 7.5% to $42.01 billion (47.82 trillion Won), a decrease of $3.4 billion (3.87 trillion Won) from the same period last year. Operating profit was down by 30% to $4.56 billion (5.20 trillion Won), its lowest in two years.  The South Korean consumer tech giant reported operating income for its mobile division of just 100 billion won ($87.9 million), down a staggering 96% from 2.4 trillion won in the same quarter last year.

The results shouldn’t come as much of a surprise. After the recalls and cancellation of the Note 7, Samsung warned the debacle could cost upward of $5 billion.

In order to gain the confidence Samsung has also stated that:

Regarding the mobile business, the company will focus on expanding sales of new flagship products with differentiated design and innovative features, as well as regaining consumers’ confidence.

Let’s see what happens in the next Quarter.