Samsung gives favourable forecast despite Galaxy Note 7 failure

Samsung has given a positive forecast despite the failure of its flagship Galaxy Note 7 smartphone..

Samsung has given a positive forecast despite the failure of its flagship Galaxy Note 7 smartphone.. (AP Photo/Ahn Young-joon) - Credit: AP

Samsung expects profits to rise by 50% in the fourth quarter as it begins to recover from the Galaxy Note 7 debacle.

The South Korean firm said on Friday it expects to record 9.2 trillion won (£6.2bn) in operating profit in the period, up from 6.1 trillion won (£4.1bn) a year earlier.

Last year Samsung was forced to scrap its flagship Galaxy Note 7 smartphone because of concerns over consumer safety, with faulty units overheating and exploding due to a battery defect.

The firm said it would cost billions to pull the smartphone off the market, but reassured investors it had enough cash to absorb the shock to its balance sheet.

Samsung expects sales to fall 1% in the fourth quarter to 53 trillion won (£35.8bn) and, for the full year, the tech giant forecasts a 10% rise in its annual income.


You may also want to watch:


Kim Young Woo, an analyst at SK Securities, said: 'It's thanks to the improvement in semiconductors and displays on top of favourable foreign exchange rates.'

Most Read

Become a Supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter
Comments powered by Disqus