Samsung slashes third quarter profit estimate third pulling plug note 7
You're referring to the significant news from Samsung Electronics!
Yes, on October 11, 2016, Samsung Electronics announced that it would slash its third-quarter profit estimate by 33% due to the massive recall and discontinuation of its Galaxy Note 7 smartphone. The company attributed the significant decline in profit to the costs associated with the recall, including the cost of replacing the defective devices, as well as the impact on its brand reputation and sales.
The Galaxy Note 7 was recalled in September 2016 due to reports of the device's battery overheating and catching fire. The recall was one of the largest and most costly in the history of the technology industry, with Samsung ultimately discontinuing the device and taking a significant financial hit.
The revised profit estimate for the third quarter of 2016 was around 5.2 trillion won (approximately $4.6 billion USD), down from the initial estimate of 7.8 trillion won (approximately $7.1 billion USD). This marked a significant decline from the same period in the previous year, when Samsung reported a profit of 7.3 trillion won (approximately $6.6 billion USD).
The recall and discontinuation of the Galaxy Note 7 had a significant impact on Samsung's financial performance, as well as its brand reputation. However, the company has since recovered and has continued to innovate and release new products, including the Galaxy S and Galaxy Note series.