Samsung Electronics announced the assessment of the impact of the termination of sales of its flagship phablet Galaxy Note7 an operating profit in the fourth quarter of 2016 and first quarter 2017 approximately 3 trillion Korean won ($2.67 billion).
The Company has allocated the projected direct costs of the discontinued Samsung Galaxy Note7 in an updated report on financial results for the third quarter, presented on 11 October 2016. However, the company expects lower revenues from spot sales will affect operating profit in the next two quarters.
The Financial impact in the fourth quarter of 2016 estimated at an average of 2 trillion Korean won ($1.78 billion), and in the first quarter of 2017 – approximately 1 trillion Korean won ($889 million).
In the future, Samsung Electronics plans to normalize indicators of the Mobile units due to increased sales of such flagship smartphones like Samsung Galaxy S7, Samsung Galaxy S7 edge.
As promised in the company, it will focus on improving the safety of products for users through significant changes in the processes of quality control.