Samsung Electronics in its regulatory filing cut its revenue
and profit for Sept 2016 ended quarter. The debacle of Note 7 started firing
financial missiles and showed the vulnerability of Samsung Electronics and its
dependency on Mobility device for profitability. Samsung cut revenue by $1.76Bn
and profitability by $2.34Bn. It clearly indicates that recall did cost then
around $500 mn.
As I wrote in my yesterday article that it will take Samsung
Mobile years to recover and the regulatory filing by Samsung Electronics
justifies it. The real impact on profitability and revenue will be visible
during Q4 which is always considered as quarter to recover losses due to
holiday season.
Samsung will be forced to promote its S7 and S7 edge heavily
to fill Note 7 from the market place but it won't be enough for Samsung to pull
it up. In my point of view, Samsung Electronics Mobile Division is going to
suffer even more.
Related Article:
Samsung Mobile Division May Take Years to Recover
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