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Samsung cuts their profit forecast by 33%

Samsung cuts their profit forecast by 33%

Samsung cuts their profit forecast by 33%

Samsung cuts their profit forecast by 33%

 
Samsung has cut their profit forecast for Q3 2016 by 33%, with the company now estimating a third-quarter profit of 5.2 Trillion won (4.6 billion/ £3.8 billion). 
 
This reduction in Samsung's profit forecasts has been caused by the recent Galaxy Note 7 recall, which has significantly impacted the reputation of the company. Samsung's recent success in the mobile phone market has been due to strong sales of their Galaxy S7 lineup, with recent events taking away Samsung's momentum in the mobile phone market. 

  

Samsung cuts their profit forecast by 33%

 

Samsung's share price has fallen by 8% since issuing halting the sales and production of the Note 7, which is a huge hit the company, given its wide range of products and services outside of the mobile phone market. 

In September Samsung had recalled over 2.5 million Note 7 phones, insisting that replacement models were safe, which has now been proven to not be the case. 

Last month Samsung confirmed that the Galaxy Note 7's overheating issue is caused by a rare manufacturing error which allows the battery's anode and cathode (positive and negative electrodes) to come into contact. This allows the mobile to discharge its battery very quickly into itself, causing a large amount of heat build up which causes the phone's lithium-ion battery to catch fire. 

 

You can join the discussion on Samsung reducing their profits forecast by 33% on the OC3D Forums

 

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Most Recent Comments

12-10-2016, 16:59:28

Chrazey
Yup, I imagine this must have been some hit for them recently.

Although, that 5.2 Trillion?... How much is that really? I mean, a billion is a lot, how much is a trillion? Is it the next step after billion?... Ie, million, billion, trillion?...Quote

12-10-2016, 17:13:07

Greenback
Quote:
Originally Posted by Chrazey View Post
Yup, I imagine this must have been some hit for them recently.

Although, that 5.2 Trillion?... How much is that really? I mean, a billion is a lot, how much is a trillion? Is it the next step after billion?... Ie, million, billion, trillion?...
5200 billion or 520000000000Quote

12-10-2016, 18:58:20

Chrazey
Quote:
Originally Posted by Greenback View Post
5200 billion or 520000000000
Now that is too many digits for me to comprehend ...Quote

12-10-2016, 19:50:58

jimma47
The real question is how much is a won?

1 South Korean Won equals 0.00089 US Dollar
so using Greenbacks figures it equals 462,269,600.00 USD or 462 Million USD (Profit)
Still a lot of profit.
An understandable hit though after the Note 7 issues.Quote

12-10-2016, 20:38:34

NeverBackDown
That's not much profit though for a company as large as Samsungs and what they actually should have earned. Remember they run a Foundry Business too. That in itself is insanely expensive.Quote
Reply
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