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Samsung profits plunge 30% amid Galaxy Note 7 recall

Published 27/10/2016

Samsung said sales dropped 7% from July to September as the firm grappled with a global recall of the Galaxy Note 7
Samsung said sales dropped 7% from July to September as the firm grappled with a global recall of the Galaxy Note 7

Beleaguered tech giant Samsung has seen profits plunge 30% in the third quarter as a major recall of its flagship Galaxy Note 7 smartphones hit earnings.

The world's largest smartphone maker said operating profit fell to 5.2 trillion South Korean won (£3.8 billion).

Samsung said sales dropped 7% from July to September to 47.8 trillion won (£34 billion) as the firm grappled with a global recall after multiple reports of the Note 7 overheating and catching fire.

The debacle has also prompted the appointment of the 48-year-old grandson of Samsung's founder, Lee Byung-chull, to the group's board following shareholder approval.

The appointment of Harvard-educated Lee Jae-yong comes at a crucial time for South Korea's biggest company.

The Note 7 was initially launched as Samsung's weapon against Apple's iPhone, but earlier this month the firm warned that its recall would dent profits.

Samsung said at the end of September that it was "confident" it had solved the battery issues and would relaunch the device in the UK at the end of October.

The company also assured that existing phone models, including the S7 "remained solid" and said it expects smartphone and tablet demand to rise in the fourth quarter.

Press Association

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