A few hours ago, the Korean company Samsung showed us its financial results for the third calendar quarter and the fourth fiscal quarter of 2016. It was already clear to us when the problematic Note 7 was withdrawn from sale that everything would have a noticeable effect on the financial results.
Samsung reported 42.01 billion dollars for the third quarter, of which the net profit is 4,56 billion dollars. If we were to compare the same period with the previous year, we would find that the company lost $3,4 billion, that is, at least as far as gross earnings are concerned. It is even worse with operating profit, where the drop was much greater. Operating profit fell by 30 percent, which is the lowest profit in two years.
It is more than clear that the biggest stumbling block was the premium model Galaxy Note 7. Unfortunately, it cost the company a lot of money and as a result did not actually make any money. However, this was reflected in the numbers. After all, Samsung can be a little complacent. Its other smartphones managed to keep the mobile division in positive profit. However, compared to the previous year, the number of 87,8 million dollars is really insignificant, the company thus worsened by a full 96 percent. The total revenue of the mobile division is $19,80 billion.
If the company wants to return to prominence, it needs an upcoming flagship Galaxy S8 to repair. According to our information, it should be presented already in the spring of 2017.
*Source: AndroidCentral
