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Note 7 predicament browns Samsung’s mobile profits

Samsung's credit takes a hit

The fire-prone Galaxy Note 7 only burnt by Samsung’s mobile phone profits.

Samsung (SSNLF) has killed off a Note 7 after a initial try to remember a flagship smartphone worldwide unsuccessful to hindrance reports of a inclination ripping into flames. The disturbance is now holding a fee on a tech giant’s bottom line.

Operating distinction during Samsung’s mobile multiplication collapsed to only $88 million in a third quarter, a association pronounced Thursday. That’s a 96% thrust from a $2.1 billion distinction it generated a year earlier.

Related: South Korean sue Samsung over botched Note 7 recall

It contributed to a 30% dump in Samsung’s altogether handling distinction to $4.6 billion, that is in line with what the association had forecast after announcing it was giving adult on a Note 7.

And there’s some-more financial pain ahead. Earlier this month, Samsung likely a serve strike of around $3.1 billion to handling distinction for a 6 months by Mar 2017.

Related: Samsung Note 7s are removing formidable to return

While those numbers are bleak, there was some good news in Thursday’s gain for a world’s biggest smartphone maker.

Sales of Samsung’s existent high-end smartphone models like a Galaxy S7 remained solid, and those of cheaper phones indeed grew.

That could fuel wish that a association can equivocate long-term repairs to a brand. It’s faced waves of disastrous headlines from a Note 7 fiasco, including airlines banning a device on flights and people in a home marketplace of South Korea suing it for compensation.

For subsequent year, Samsung pronounced it “anticipates a turnaround with a launch of new flagship smartphones.”

Translation? A lot will be roving on a Galaxy S8 and Note 8 inclination when they come out.

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