Samsung’s profit drops by 30% after Galaxy Note 7 problem

Samsung’s operating profit has declined by 30% in three months to September as a result of its Samsung Galaxy Note 7 Smartphones’ battery cell problems.

In the recent company’s third quarter report, a reported decline of 7.5% fall was recorded in revenue to 47.82tr Won (£34.2bn), compared with 51.69tr Won during the same quarter last year.
Hence, operating profit decreased year on year from 7.39tr Won to 5.2tr Won.

It will be recalled that the Smart phones were recalled by the company with some airlines banning it on their flights after reports of the phones catching fire.

The company had stressed that it was investigating what exactly went wrong with the Samsung Galaxy Note 7.

The Korean manufacturers assured customers that there would be no issues after switching battery manufacturers and exchanging defective handsets but even replacement devices started burning up.


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