Samsung has announced its third quarter results, revealing that the company had revenue of KRW 47.82 trillion for the quarter. This figure represents a decrease of KRW 3.87 trillion compared to the previous year. The decline in revenue has been attributed to several factors, most notably the recall of the Galaxy Note 7.
Impact of the Galaxy Note 7 Recall
Samsung explained in its earnings release that both its earnings and profit were significantly impacted by the Galaxy Note 7 recall. The recall was a major event for the company, as it involved pulling the product from the market due to safety concerns related to battery malfunctions. This not only affected sales but also damaged the brand’s reputation temporarily.
Samsung Electronics today announced financial results for the third quarter ended Sept. 30, 2016. Samsung’s revenue for the quarter was KRW 47.82 trillion, a decrease of KRW 3.87 trillion YOY, while operating profit for the quarter was KRW 5.20 trillion, a decrease of KRW 2.19 trillion YOY.
For the IT & Mobile Communications Division, earnings declined due to the Galaxy Note7 discontinuation. However, the Consumer Electronics Division achieved solid earnings growth YOY driven by strong sales of SUHD TVs and premium home appliances.
The recall of the Galaxy Note 7 was a significant setback for Samsung’s IT & Mobile Communications Division. The company had to halt production and sales of the device, which led to a substantial financial loss. Additionally, the costs associated with the recall process, including refunds and replacements, further strained the company’s finances.
Consumer Electronics Division Performance
Despite the challenges faced by the IT & Mobile Communications Division, Samsung’s Consumer Electronics Division showed resilience and achieved solid earnings growth year-over-year. This growth was driven by strong sales of SUHD TVs and premium home appliances. The success in this division helped to offset some of the losses incurred due to the Galaxy Note 7 recall.
Samsung’s SUHD TVs have been well-received in the market, thanks to their advanced display technology and superior picture quality. The company’s premium home appliances, including refrigerators, washing machines, and air conditioners, have also seen strong demand, contributing to the overall growth of the Consumer Electronics Division.
Looking ahead, Samsung is optimistic about its performance in the fourth quarter. The company expects to see improvements as it continues to focus on its core strengths and address the challenges faced in the third quarter. Samsung is also likely to benefit from the launch of new products and innovations in the coming months.
You can find out more details about Samsung’s third quarter earnings at the link below. The company is expecting quarter four to improve.
Source Samsung
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