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Samsung profits drop 17 percent after phone recall

Posted: 8:26 PM, Oct 26, 2016
Updated: 2016-10-26 20:52:29-04
Samsung profits drop 17 percent after phone recall
SEOUL, South Korea (AP) — Samsung Electronics says its third quarter profit has plunged 17 percent as Galaxy Note 7 recalls nearly wiped out its mobile profit.
 
The South Korean tech giant said Thursday that its July-September net income was 4.4 trillion won ($3.9 billion), down from 5.3 trillion won a year earlier.
 
Samsung, the world's largest smartphone maker, said its troubled mobile business generated just 100 billion won ($87.9 million) in operating income during the quarter because it discontinued the Galaxy Note 7 smartphone. Samsung's mobile business usually contributes more than half of its overall income.
 
Sales fell 7 percent to 47.8 trillion won ($42 billion), while operating income slumped 30 percent to 5.2 trillion won ($4.6 billion), in line with the company's guidance earlier this month.