Samsung says Galaxy Note 7 saga to cost £2 billionComments Off on Samsung says Galaxy Note 7 saga to cost £2 billion
The world’s biggest smartphone maker has abandoned production of the Galaxy Note 7 and ordered retailers to stop selling the product after hundreds of its flagship devices were reported to have caught fire.
Today, the tech giant confirmed that the move would knock £1.9 billion off its operating profit in the third quarter as it slashed guidance from £5.7 billion (7.8 trillion won) to £3.8 billion (5.2 trillion won).
It is the first time Samsung has put a price on the scandal.
The company also cut revenue guidance. After forecasts sales of 49 trillion won last week, it now expects weaker third-quarter sales of 47 trillion won.
The scandal — which has already caused Samsung’s market value to plummet by £20 billion this week — dragged its shares down again.
The slashed guidance was announced after the Korean market shut.