Menu
Samsung cuts revenue and profit forecast after Note7 fiasco

Samsung cuts revenue and profit forecast after Note7 fiasco

The revenue and profit cuts come a day after the company scrapped the Note7 smartphone

Samsung Electronics has cut its revenue and profit forecasts for the third quarter, after the disastrous launch of its flagship Galaxy Note7, which eventually led to the company recalling the smartphones and stopping their production in the wake of reports of overheating batteries.

The South Korean company said Wednesday that revenue for the quarter was likely to be about 47 trillion won (US$4.2 billion), down from the 49 trillion won that it had expected earlier this month in a preliminary forecast. Operating profit is expected to drop by about 2.6 trillion won to 5.2 trillion won.

The company said it was revising its revenue and profit forecast because of the Note7 debacle.

Samsung said Tuesday it was discontinuing production of the Note7 smartphone, after fires and even explosions were reported involving replacement units that had been issued after it was found that a battery-cell issue could lead to overheating and even fires in some of the Note7 phones shipped since mid-August. About 1 million Note7 phones were to be replaced by the company under a recall announced by the Consumer Product Safety Commission in the U.S. in mid-September.

Among the commitments the company gave to customers in the U.S. under the recall program was a promise to replace the smartphones with new Note7s, or refund the cost of the phone, or exchange it with Galaxy S7 and S7 edge smartphones. By Monday, when the company asked carriers and retailers worldwide to stop the exchange of the Note7, only the other options were left to customers.

The reduced revenue and profit forecast could reflect the lost business in the third quarter and the costs of the recall.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags samsung

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments