samsung slashes profit estimate after note 7 disaster
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

Samsung slashes profit estimate after Note 7 disaster

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleSamsung slashes profit estimate after Note 7 disaster

A man holds his mobile phone Samsung Galaxy Note 7 at a mobile phone shop in Hanoi, Vietnam.
Seoul - Arab Today

Samsung Electronics slashed its latest quarterly profit estimate by one third in the wake of a highly damaging recall crisis that ended with the scrapping of its latest flagship smartphone.
In the first indication of just how much the Galaxy Note 7 fiasco might end up costing the world’s largest smartphone maker, Samsung revised its operating forecast for the third quarter to 5.2 trillion won ($4.6 billion), compared to the 7.8 trillion won it announced just last week.
The company said the revision reflected the expected impact on sales and earnings of its decision on Tuesday to permanently discontinue production of the Note 7.
Song Myung-Sup, an analyst at Hi Investment & Securities, said the impact would be felt for many quarters to come.
“Halted production of the Note 7 will damage Samsung’s brand image and trust and eventually hurt future sales of its smartphones,” Song said.
“Given that it needs to spend more on research, development, inspection and marketing down the road, this crisis will affect its earnings until late 2017,” he added.
The company also slashed its third-quarter sales estimate by four percent to 47 trillion won from 49 trillion won.
The announcement came after the close of trade Wednesday which saw Samsung’s share price fall 0.7 percent, following an 8.0 percent plunge the day before.
Wednesday’s revision would reflect a 30-percent drop in Samsung’s quarterly operating profit from a year ago, compared to a 5.5-percent rise according to the earlier estimate.
Samsung announced a recall of 2.5 million units of the oversized Galaxy Note 7 smartphone in early September after several devices exploded or caught fire.
When replacement phones also started to combust, the company eventually decided to scrap the Note 7 line entirely.
The company blamed faulty batteries made by an unnamed supplier — widely believed to be its sister company Samsung SDI.
But reports in the Wall Street Journal and Financial Times cited analysts, experts and other sources who suggested the fault may have been with the underlying technology — possibly the processor or voltage control system.
“If you try to charge the battery too quickly it can make it more volatile. If you push an engine too hard, it will explode. Something had to give,” a source who had spoken to Samsung executives told the Financial Times.
Discontinuing the Note 7 leaves Samsung extremely vulnerable as the highly-competitive market for premium smartphones enters the holiday buying season.
Arch-rival Apple launched its latest iPhone 7 last month, and Google just came out with its Pixel smartphone, which runs on the same Android software as Samsung’s devices.
Numerous analysts have suggested that the rush to release the Note 7 ahead of the iPhone 7 left Samsung’s engineers little time to test the device’s new built-in battery.
The Note 7 was meant to underpin growth this year as Samsung struggles to boost sales, squeezed by Apple in the high-end sector and Chinese rivals in the low-end market as profit has stagnated.
Wednesday’s revised earnings forecast, which comes ahead of audited results to be released this month, did not provide a net income figure or breakdown of divisional earnings for the company’s mobile, TV, semiconductor and display units.

Source: Arab News

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

samsung slashes profit estimate after note 7 disaster samsung slashes profit estimate after note 7 disaster

 



Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

GMT 06:29 2018 Sunday ,21 January

500 new trainees join US-backed Syria border force

GMT 10:31 2017 Sunday ,20 August

the history of solar eclipses

GMT 16:36 2017 Tuesday ,05 December

Gulf Air launches Bahrain Tourist Visa Service

GMT 03:19 2012 Saturday ,15 September

FREEDOM

GMT 06:56 2014 Friday ,12 September

No winners in Gaza

GMT 22:30 2012 Monday ,16 July

Sudan ruling party says protests \'ridiculous\'

GMT 07:09 2012 Wednesday ,20 June

Sudan and South Sudan border tensions

GMT 12:02 2012 Tuesday ,17 April

What the Living Do

GMT 17:33 2017 Saturday ,25 March

Caceres recalled to Paraguay squad for Brazil clash

GMT 17:18 2017 Tuesday ,19 December

Bahrain weather forecast

GMT 09:35 2017 Sunday ,29 October

Actress Annabella Sciorra accuses Weinstein of rape

GMT 13:43 2017 Thursday ,16 November

People Magazine names Blake Shelton 'sexiest man alive'

GMT 18:10 2017 Monday ,17 April

GCC Secretary-General Condemns Syria Blast
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle