Samsung’s profits are expected to decline further
Samsung says it expects its profits to fall further after the recall of its Note 7 and its earnings will be affected in the first quarter of 2017.
The company had earlier reported a decline in its earnings in the third quarter of this year.
On Friday, the company said it expects to have an additional negative impact of about ً 7.2 billion.
Samsung decided to recall the phone last month due to a faulty battery in its Note 7 phone and offered a replacement phone instead. However, the same error was found in it, after which the company has decided to cancel this phone completely.
The phone was launched last August to compete with Apple’s new iPhone 7 in the market, but Samsung’s Note 7 battery was found to have a defect that could not be fixed.
Samsung reported a loss of about 2.5 billion in the third quarter of this year, and the company as a whole could lose more than ارب 5 billion.
The company says sales of its other phones, such as the Galaxy S7 and S7 Edge, are expected to help normalize the mobile phone business.
The company said in a statement: “The company will pay more attention to safety in making products for its customers and for that it will make significant changes in product quality.”
The company recalled about 2.5 million phones from the market in September after the phone Note 7’s battery overheated and then exploded.
The company later announced that the replacement phones offered in its place were safe, but found that it also had a battery fire complaint.
On Tuesday, the company announced that it was completely shutting down the phone and instructed users to turn it off.