Zamen | زامن
Samsung's Note 7 Discontinuation Poised to Cost Company $2.3 Billion
Following confirmation that Samsung has discontinued the Galaxy Note 7 amid its well-publicized fire-catching problems, the company today gave the first indication of how much the move will cost it for the third quarter of 2016. In a report by Bloomberg, Samsung is said to have cut its third quarter operating profit by $2.3 billion and adjusted profit expectations from 7.8 trillion won ($6.9 billion) to 5.2 trillion won ($4.6 billion).The company's projection "effectively erases all the mobile business profit that analysts had been projecting," with revenue expected to dive from 49 trillion won to 47 trillion won. On the wave of Samsung's woes, Apple shares reached a record high this year, but Samsung had yet to divulge its potential quarterly loss. Analyst Greg Roh said that Samsung's prediction accounts not only for defective units, but also "the inventories of Note 7s in the channel as well as the components they bought a few months back.”
See this content immediately after install