Samsung has announced its financial results for the third quarter of 2016, and - as expected - the Galaxy Note7 fiasco has taken a huge toll on the company's profits.
The tech giant's mobile division reported an operating profit of KRW 0.10 trillion ($87.8 million), which is down 96% from the same time last year. That's also the lowest figure for the South Korean company in the past eight years.
The company's overall operating profit for the quarter stood at KRW 5.20 trillion ($4.5 billion), down KRW 2.19 trillion from the profit figure reported in Q3 2015. That's lowest for the company in past two years.
"The Mobile business saw its earnings decrease significantly QOQ due to the effects of the discontinuation of the Galaxy Note7," Samsung said in a press release.
"However, smartphone shipments remained solid due to continued stable sales of its existing flagship devices, including the Galaxy S7 and S7 edge, and steady growth in the mid-tier Galaxy A and J series."
For the fourth quarter, the company is expecting that the the year-end peak season and the popularity of the Galaxy S7 and S7 edge smartphones will help it achieve comparable YOY earnings. "As for 2017, the company anticipates a turnaround with the launch of new flagship smartphones."
You misunderstand. 96% Year on year this quarter. This quarter last year they made 96% more profit. This doesn't mean they lost money, just didn't make as much
96% down? If I'm not wrong, that means they have almost nothing left
Awesome reply! I absolutely respect your choice because of all phones, the s7 edge was the perfect fit for you, which is not for me but i won't force my opinions down your throat like what a typical fanboy would do.