Published on October 7th, 2016 | by The GC Team0
Samsung Q3 earnings guidance beats analysts’ expectations
Samsung Electronics today said it expects an earnings rise of 5.6% for the third quarter of 2016, despite a widespread product recall of its Galaxy Note7 smartphones.
In its earnings guidance for the July to September period, the company said operating profit was expected to be around KRW 7.8 trillion on sales of KRW 49 trillion.
Analysts had predicted lower earnings for the quarter due the Note7 problems. However, a strong performance in the Korean manufacturer’s chip and display business is likely to offset the impact of the product recall.
Samsung recalled the smartphones early in September after reported incidents with exploding batteries. “Our number one priority is the safety of our customers. We are asking users to power down their Galaxy Note7s and exchange them as soon as possible,” President of Samsung Mobile Communications Business DJ Koh said in a statement.
The company added that it was expediting replacement devices so they can be provided through an exchange programme on a local basis.