The Note7 will cost Samsung another $3 billion in profit
The fallout from the Note7 debacle, which is expected to take a big chunk out of Samsung’s third-quarter profit, will keep hurting its business into next year, the company said.
The fourth-quarter impact on Samsung Electronics' operating profit will be "in the mid-2 trillion won range," the company said in a press release early Friday. Using the midpoint of 2.5 trillion South Korean won, that would be about US$2.2 billion. The damage will continue in the first quarter of next year, with an impact of about 1 trillion won, Samsung said.
The company announced Tuesday it had permanently stopped production of the Note7. It had launched a recall of the phone just weeks after it went on sale because of fires and explosions that destroyed some of the devices. Then, some replacement units it sent out as part of the recall had the same problem.
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