Samsung’s Q3 earnings expected to remain stable even after Galaxy Note 7 recall
Now that the dust is settling on the Galaxy Note 7 recall, analysts are coming up with their estimates on how the debacle is going to impact the company’s Q3 earnings. Samsung had a record-breaking Q2 as the Galaxy S7 series proved to be a hit. It wanted to continue that momentum in Q3 with the Galaxy Note 7 but things didn’t turn out the way it would have wanted. Some believe that the Galaxy Note 7 recall is going to cost Samsung as much as $1 billion and will also result in low sales for the new flagship. Industry tracker FnGuide suggests that Samsung will post an operating profit of 7.5 trillion won ($6.79 billion) in Q3 registering a 6 percent decline when compared to 8 trillion won in the previous quarter.
It also expects the company’s total sales to come in at 51 trillion won which will be a slight increase from 50.9 trillion won in the previous quarter. Samsung’s Q3 performance is largely expected to remain stable now as initial fears about the Galaxy Note 7’s post recall performance subside. The handset remains popular in key markets and there’s nothing to suggest that a large number of customers are not going to purchase a new Galaxy Note 7 after safe units are made available.Join the Discussion