Credit Ed Jones/Agence France-Presse â Getty Images
SEOUL, South Korea â Samsung Electronics said on Friday that it expected about $ 3 billion in operating profits to evaporate over the next two quarters because of its decision to ditch the troubled Galaxy Note 7 smartphone.
Samsung said in a news release that the profit loss tied to that decision was expected to be in the mid-2 trillion won range in the October-December period and about 1 trillion won, or $ 900 million, for the first quarter of next year.
Since its decision to recall millions of Note 7 devices and end production of the model, Samsung has been readjusting profit estimates. On Wednesday, it revised its previously estimated profit of 7.8 trillion won for the third quarter, cutting it to 5.2 trillion won.
With the Note 7, Samsung had hoped to compete with Appleâs iPhones in the high-end smartphone market. But after some of the Note 7s were reported to heat rapidly and catch fire, it faced one of the biggest and most costly product recalls in the technology industry.
âMoving forward, Samsung Electronics plans to normalize its mobile business by expanding sales of flagship models such as the Galaxy S7 and Galaxy S7 Edge,â the company said in a statement. âAdditionally, the company will focus on enhancing product safety for consumers by making significant changes in its quality assurance processes.â