Samsung has already revised its operating profit forecast for the third quarter of this year, estimating that it will lose $2.3 billion as a result of the Galaxy Note 7 discontinuation. The company has said today that it now estimates to lose mid-3 trillion won ($3 billion) in operating profit from the fourth quarter of this year through the first quarter of 2017 because it has had to cancel its flagship smartphone.
Analysts have estimated that the Galaxy Note 7 fiasco is going to cost Samsung around $17 billion. By the company’s own admission the financial impact of the crisis is going to be over $5 billion and it may very well get there. Samsung says that it expects this drop from discontinued sales to have a negative impact on operating profit for the next two quarters. Samsung also says that it’s going to “normalize” its mobile business by expanding sales of the Galaxy S7 and the Galaxy S7 edge. It also promises to enhance product safety for consumers by “making significant changes in its quality assurance processes.”
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