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Samsung to suffer a loss of $3 billion over the Note 7 disaster

17 October, 2016 Samsung


Samsung has made it official today that the company expects to lose over $3 billion (3.5 trillion WON) during the remainder of this year and the first quarter of the next. However, the South Korean electronics giant is hopeful that it will get back on its feet from the second quarter of 2017. As you can guess, that expectation is largely based on the success of the Galaxy S8, which will be released around that time.


Q4 2016 alone is estimated to cost Samsung a whopping $2.2 billion dollars in losses. Things will brighten up a bit in Q1 2017, as Samsung will expectedly see a less daunting drop in profits with a loss of $800 million. Now that the Note 7 is gone for good, they will be manufacturing and marketing the S7 and S7 Edge with renewed vigor to make up for at least some of the losses.


What remains to be seen is how much the Note 7 incident will affect the Samsung name as a trusted brand. To focus on this point in particular, it was stated at the end of the report that the company will prioritize, "enhancing product safety for consumers by making significant changes in its quality assurance processes."


Saikat Kar (tech-enthusiast)

 


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