Samsung Slashes Profit Estimates Amid Galaxy Note 7 Issues
+ READ ARTICLE(SEOUL) – Samsung Electronics Co slashed its quarterly profit estimate by a third on Wednesday, soaking up a $2.3 billion hit from ditching its flagship smartphone in what could be one of the costliest product safety failures in tech history.Quantifying the financial pain of Tuesday's move to scrap the Galaxy Note 7 smartphone after a global recall and weeks of mounting problems, the world's top smartphone maker said it expects its July-September operating profit was 5.2 trillion won ($4.7 billion), down from the 7.8 trillion won it estimated five days ago.Samsung said in a statement the 2.6 trillion won ($2.3 billion) guidance cut reflects the sales and earning impact it currently expects from the decision to permanently halt sales of the $882 Note 7 device.Its third-quarter revenue estimate was also cut to 47 trillion won from 49 trillion won previously.
Replacement Samsung Galaxy Note 7 phone catches fire on Southwest plane
Southwest Airlines flight 994 from Louisville to Baltimore was evacuated this morning while still at the gate because of a smoking Samsung Galaxy Note 7 smartphone.All passengers and crew exited the plane via the main cabin door and no injuries were reported, a Southwest Airlines spokesperson told The Verge.More worrisome is the fact that the phone in question was a replacement Galaxy Note 7, one that was deemed to be safe by Samsung.The Verge spoke to Brian Green, owner of the Note 7, on the phone earlier today and he confirmed that he had picked up the new phone at an AT&T store on September 21st.
U.S. bans Samsung Galaxy Note 7 smartphones from air travel
The logo of Samsung Electronics is seen at company's headquarters in Seoul, South Korea, October 11, 2016.REUTERS/Kim Hong-JiThe logo of Samsung Electronic is seen at its headquarters in Seoul, South Korea, April 4, 2016.REUTERS/Kim Hong-Ji/File PhotoSignage is seen at the Samsung 837 store in the Meatpacking District of Manhattan, New York, U.S., October 10, 2016.REUTERS/Andrew Kelly/File PhotoWorkers take a billboard of Samsung Electronics' Galaxy Note 7 off from atop a building in central Seoul, South Korea, October 14, 2016.
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