Wednesday October 12, 2016

Samsung Slashes 3Q Profit Estimate By A third

I knew that profit report we posted the other day was a little high. Hell, I think they are being conservative right now by only cutting profit estimates by a third because of this whole Galaxy Note 7 issue.

Samsung Electronics Co slashed its quarterly profit estimate by a third on Wednesday, soaking up a $2.3 billion hit from ditching its flagship smartphone in what could be one of the costliest product safety failures in tech history. Quantifying the financial pain of Tuesday's move to scrap the Galaxy Note 7 smartphone after a global recall and weeks of mounting problems, the world's top smartphone maker said it expects its July-September operating profit was 5.2 trillion won ($4.7 billion), down from the 7.8 trillion won it estimated five days ago.