Samsung profit News

Samsung Electronics reported a sharp fall in its quarterly earnings on Thursday as the unprecedented recall and discontinuation of the Galaxy Note 7 smartphones wiped out its mobile profit.

Samsung on Friday said the crisis over its exploding Note 7 smartphones would cost another $3 billion-plus in lost profit over the next two quarters, but hoped expanded sales of its other flagship handset would help cushion the impact.

Samsung today suspended all production of its Galaxy Note 7 smartphone, halted sales worldwide and told customers to stop using the device, following reports that replacements for combustible models were also catching fire.

South Korean giant Samsung Electronics posted an 8.0 percent fall in second quarter net profit on Thursday and promised "flexible" pricing of its new flagship smartphone after less than stellar sales contributed to a slump in its mobile unit's earnings.

Revenue slid 7.29 percent from a year earlier to 48.54 trillion won in the quarter, and net income fell 7.97 percent to 5.75 trillion won.

In an earnings estimate, the giant South Korean smartphone and memory-chip maker predicted operating profit of around 6.9 trillion won ($6.1 billion) for the April-June period, down 4.2 percent from a year earlier.

Samsung Electronics on Tuesday flagged better-than-expected profits for the first quarter, with rising demand for memory chips helping offset slumping smartphone sales.

Three deputies to the head of Samsung Electronics Co Ltd`s mobile division are leaving, a person with knowledge of the matter said on Thursday, as the world`s largest smartphone maker faces a rapid decline in profit.

The third-quarter performance by the world`s largest manufacturer of smartphones and televisions followed a 20 percent drop in profit in the second quarter.