Samsung Announces Third Quarter Results
Galaxy Note Disaster Wipes Out Samsung's Mobile Profits
Earlier today, Samsung announced its third quarter results, giving us a first idea of the fallout following the disastrous launch of the Galaxy Note 7. The device, first released in August, was supposed to be Samsung’s new flagship smartphone, but turned into every company’s worst nightmare after several reports of the phone’s battery catching fire emerged. A global recall didn’t solve the problem, ultimately forcing Samsung to stop selling the Galaxy Note 7 altogether.
Samsung’s operating profit for the quarter amounted to 5.2 trillion won, down from 7.8 trillion Samsung had originally anticipated. As our chart illustrates, the incidents surrounding the Note 7 all but wiped out the company’s mobile profits. Operating profit from Samsung’s mobile communications segment declined by 96 percent compared to last year, burning a hole of more than $2 billion into the company’s accounts.
While billions of dollars in lost profit would be enough to put many companies out of business, Samsung is probably large enough to move on from this unfortunate episode down, but not out. In the end, there is a lesson to be learned from every disaster. This particular lesson being that spontaneous self-combustion is not a feature smartphone users are looking for.
- Samsung Electronics operating profit in 2016, by categorySamsung Electronics operating profit in 2016, by category
- Samsung Electronics' operating profit from consumer electronics 2013-2016Samsung Electronics' operating profit from consumer electronics 2013-2016
- Samsung Electronics' operating profit from IT & mobile communications 2013-2016Samsung Electronics' operating profit from IT & mobile communications 2013-2016
- China: mobile phone subscriptions by month February 2016China: mobile phone subscriptions by month February 2016
- Mobile operating systems: market share in the United Kingdom (UK) 2010-2017Mobile operating systems: market share in the United Kingdom (UK) 2010-2017
- Estimated weekly TV ad spend of U.S. companies March 13-19, 2017Estimated weekly TV ad spend of U.S. companies March 13-19, 2017
- GlaxoSmithKline's profit 2006-2016GlaxoSmithKline's profit 2006-2016
- Net sales of the Reebok brand worldwide 2006-2016Net sales of the Reebok brand worldwide 2006-2016
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