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Samsung Electronics Revenue and Profit Warning -Just the beginning

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.

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Samsung Mobile Division May Take Years to Recover

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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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