Samsung profits beat estimates despite Note 7 global recall
Seoul, Oct 7 (IANS) Despite the global recall of its flagship Galaxy Note 7 over battery explosion fears, Samsung Electronics on Friday released a positive forecast for the third quarter of this year, expecting operating profits of 7.8 trillion Korean won (approx $7 billion) and revenues of 49 trillion Korean won.
The operating profits are a 5.6 per cent increase on the same period a year ago when the company registered 7.4 trillion won in operating profits, Samsung Electronics said in its earnings guidance for the third quarter.
“The profits are higher than what South Korean analysts predicted who lowered figures following the global recall of the Galaxy Note 7 due to battery explosions,” technology website zdnet.com reported.
The cheering news came at a time when the south Korean giant is facing global flak over its flagship device Note 7 which is yet to come to India. Analysts expected Samsung to lose over $1 billion in profits from Samsung’s third quarter.
A replacement Note 7 device reportedly caught fire on a US flight this week, leading to cancellation of the flight after evacuation. Southwest Airlines flight 994 from Louisville to Baltimore was evacuated during the boarding process after a smoked Note 7 was spotted.
Samsung later issued a statement: “Until we are able to retrieve the device, we cannot confirm that this incident involves the new Note7. We are working with the authorities and Southwest now to recover the device and confirm the cause. Once we have examined the device we will have more information to share.”
India’s civil aviation regulator last week lifted the restrictions on in-flight use of the new Samsung Galaxy Note 7 smartphone — but only those purchased after September 15.
On September 9, the Directorate General of Civil Aviation (DGCA) had prohibited the use of the high-end smartphone on-board aircraft.
The DGCA said the usage restrictions have only been lifted for Note 7 purchased after September 15. Restrictions still continue for Note 7s purchased before that date.
“It is important to note that Samsung has not sold a single unit of Galaxy Note7 in India so far. The ‘green battery icon’ will apply to all Galaxy Note7 units that will be sold to customers in India when it is launched,” said a Samsung India spokesperson.