The OEM has revised predictions for the future after the issues surrounding the Galaxy Note 7 smartphone.
On its website, Samsung stated that “after recent incidents and in consideration of our consumers’ safety, Samsung Electronics stopped sales, exchanges and production of the Galaxy Note 7”. In light of this, it shared “revised pre-earnings guidance which reflects the impact of this decision on the third quarter earnings”, having only last week revealed its predictions for third quarter results would see a profit “jump”.
Operating profit for July to September was expected to be ?7.8 trillion ($6.9 billion/€6.2 billion), but is now expected to be ?5.2 trillion ($4.5 billion/€4.1 billion), with Samsung having predicted the Note 7 issues “could have undercut mobile earnings by at least” ?1 trillion ($896 million/€805 million). Revenue for the quarter meanwhile was originally expected to fall 5.2 percent to ?49 trillion ($43 billion/€39 billion), less than analysts’ expectations of ?51.1 trillion ($45.8 billion/€41.1 billion), but the revised figures take this down further to ?47 trillion ($41.3 billion/€37.5 billion).
As The Recycler pointed out last week, Samsung did not reference the potential impact of Samsung’s deal last month with HP Inc, where the latter acquired Samsung’s printing business for $1.05 billion (€932.8 million). The Recycler had previously reported Samsung was mulling over a $1.8 billion (€1.6 billion) sale to HP Inc, after the Seoul Economic Daily outlined Samsung was “considering selling its printer business” as it “shifts focus to its core businesses”.