Monday, October 31, 2016

Note 7 incinerates the profits of Samsung Mobile – TECHcetera – TECHcetera

Chao gains. The Note 7 "incinerated" the operating profit of Samsung Mobile, which fell to 97.7% in the third quarter of the year derived from the debacle that forced the company to cancel production of the phablet and to pick up the units already sold.

The company, as a whole, reported sales of USD 42,000 Million, which represents a fall of 7.5% compared to the same quarter of the previous year, and an operating income of USD 4,400 Million which represents a decrease of 30%. But it could be worse to not be by the behavior of their other divisions.


An interesting fact: despite the tremendous blow of the Note 7 the division of mobile was able to take profits (something that companies like LG have not achieved in more than 6 quarters), although it is the lowest value in almost a decade.

The company has indicated that it will focus all its forces in its Galaxy S7 and 7 Edge to look to improve their margins in the face at the end of the year while will fight in the mid-market and low-to regain the market share that it lost during the previous quarter.

And that is if someone felt the pressure of the manufacturers of chinese smartphones during the quarter were Korean automakers (in the lead of Samsung and LG). According to figures from IDC, the company, in spite of maintaining its leadership in the market, lost almost 14% of the market share.

samsung-remains-front-runner-as-to-3q-statistics-p1-2-49
Initially spoke of an impact of USD 1,000 Million, then it went up to USD 5,000 Million, but now there are analysts who believe that the debacle of Note 7 could prove to have an impact of more than $ 11,000 million, without counting the possible impact of the demands that have already begun to see, mainly in the united States and China.

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