Recall from Note 7 knocks down sales and profit of Samsung in the … – Computerworld

Samsung has announced a 15% fall in sales of its divisions of the IT and mobile communications of the quarter July-September, compared to the same period last year, reaching $ 22.5 trillion Korean won (or US$ 19,8 billion). The operating profit in these areas plummeted by 95%, to 100 billion Korean won.

The total revenue of the company declined 7% in comparison with the same quarter in 2015, to 48 trillion won and net profit of 17%, to 4.5 trillion won. The sales of electronic products fell by 5%, but profits more than doubled in this segment due to the high demand for 4K tvs and high-end applications for the home.

The problems with the Note 7 began to affect sales soon after its release, in mid-August. At the beginning of September, the reports of which several units had incediado did with that Samsung began a costly program of recall and replacement. When it became clear that the equipment replacements had the same problem, the company withdrew the model from the market permanently.

Perhaps surprisingly, Samsung reported that it did not register a significant effect during the quarter in sales of its two other high-end models, the Galaxy S7 and S7 the Edge, but admitted that "recovering consumer confidence" will be a goal crucial in the coming months.

For the current quarter, which covers the period key sales year-end, the company intends to recover normal levels of profitability in the division for the smartphone, due to the consistent sales of the two premium models and the growth of the demand of the devices of the middle range of the series Galaxy A and J.

"as far As 2017, the company anticipates a turn with the release of these two new smartphones state-of-the-line (flagship)," he said in an official note. "We will also see the expansion of the platform of mobile payment Samsung Pay, and the services associated with the cloud computing, as well as the new offerings related to artificial intelligence."

The costs of the recall of the Note 7 will continue to press the company for at least this quarter and the first of 2017.