Thursday, October 13, 2016

Crisis Note 7 will cost more than 5 mil mdd to Samsung – The Financial

Seoul.- Samsung estimated Friday that the crisis tied to their phones Galaxy Note 7 that burst will cost you more than $ 3 billion in its operating result over the next two quarters, in the hope that the increased sales of your other mobile star cushion the blow.

in Addition to its losses in the third quarter, Samsung believes that the decision to stop the Galaxy Note 7 will continue to reduce their profit margins during the period of October to march, which includes the period of vacation, which is crucial for their sales.

“The negative impact is estimated to be between 2 and 3 trillion won (around 2 thousand 200 million dollars) in the fourth quarter of 2016 and one trillion won (about 880 million dollars) in the first quarter of 2017,” stated the giant south Korean electronics, in a statement.

“Samsung Electronics has the intention of normalizing their mobile activities to increase the sales of stellar models such as the Galaxy S7 and the Galaxy S7 Edge,” according to the same document.

This warning about the results comes two days after the announcement of the electronics of a reduction of a third in its forecasts of operational benefit for the third quarter, estimated at $ 2.3 billion, also linked to the fiasco of the Galaxy Note 7.

production of the Galaxy Note 7 was suspended on Tuesday, two months after its launch, due to defects capable of causing the explosion that was destined to be a star product of the latest generation. The world’s leading manufacturer of “smartphones” also on Tuesday called for all distributors to stop selling the device in question.

Samsung ended up confirming the complete failure of this product to ask the millions of people who had bought into all the world to turned off as a security measure.

*With information from Bloomberg

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