Samsung on Friday say it expects to lose an additional $3 billion in operating profits through March 2017, because of the costs involved with the Galaxy Note 7 fire fiasco.
That amount comes on top of the original $2.3 billion hit to third quarter profits that the South Korean electronics firm already expected to take. Bloomberg reports about $2 billion of the extra loss should hit in the December quarter, with the remaining $1 billion loss to impact Q1 2017 operating profits.
Samsung hopes to recover some of the expected income via sales of its popular Galaxy S7 and S7 Edge, which were released earlier this year, and continue to sell well despite their hot-headed sibling’s issues. The company will still take quite a hit, as the Note 7 was designed to go head-to-head with Apple’s popular iPhone/7 Plus lineup of handsets.
Although the Note 7 will hit Samsung below the money belt, the electronics firm is still expected to continue to show a profit, thanks to its chip, display, and appliances divisions. Less than half the company’s revenue comes from its mobile devices division.
(Via AppleInsider)
