After all, Galaxy Note 7 did hit Samsung Q3 balance sheet
Few days ago, Samsung released guidance report for Q3 performance and took everyone by surprise with recording $7 billion profit on $43.9 billion sales. There was simply no effect of Galaxy Note 7 fiasco. And analysis believed that Korean giants’ chip and display business may have made up for mobile division. But, today Samsung revised the balance sheet and it looks like Note 7 indeed hurt the company more than ever.
The new guidance report wiped off 33% of profit and takes the figure down to $4.6 billion on $41.8 billion sales, oops! This results in first YoY decline for tech giant in last two years. We expect the same pattern in Q4 as well.
With Galaxy Note 7’s end of life, Samsung may have left all the mess behind it but it needs to hit back hard to gain lost consumer trust next year. And early indications of upcoming Galaxy S8 indeed looks in line with our projections.