Debacle of the Galaxy Note 7 ‘burning’ the profits of Samsung – CNET in Spanish

The third quarter Samsung went down in flames.

The electronics giant of Korea had deposited its hopes on the Galaxy Note 7, a phone with which he hoped to emerge in the mobile market. In fact, Samsung was expected to report a modest increase in its operating profit compared with the same period last year.

But the hopes of Samsung disappeared when the company was forced to issue a withdrawal world of devices Galaxy Note 7 earlier this month after a glaring flaw in the battery that caused tens of phones them to explode or burst into flames. The company said in mid October that it would suspend the Note 7 after a second withdrawal of the device then continue with the heating problems.

The effects of the debacle are expressed with clarity Wednesday, when Samsung reported its worst operating profit in two years. The company recorded 5.2 trillion won (US$ 4,500 million) in operating profits, a decline of almost 30 percent year after year.

The mobile division of Samsung, the division responsible for the Note 7, reported an operating profit of 100 billion won (US$ 87,800 million), a decrease of around 96 percent and its lowest level in nearly eight years. Income amounted to 47.8 trillion won (US$ 41,900 million), a decline of 7.5 percent from 3.87 trillion won (US$ 3,400 million).

The results should not be viewed as a great surprise. After the withdrawal of world and the cancellation of the Note 7, Samsung warned that the disaster could cost more than US$ 5,000 million.

What is perhaps most painful thing for Samsung is that I was riding a comeback in the mobile space. The launch of the Galaxy S3 in 2012, crowned as king world of smart phones, helped fuel five consecutive quarters of record earnings. But the luck of telephone number of the company faded when phones later failed to excite consumers.

The Galaxy S7 appeared to be the product of Samsung needed to straighten out his ship, which contributed to a robust recovery during the last two quarters. The Note 7, which came to market in mid-August, it was expected that solidified the leadership of Samsung in the mobile telephony market after the strong presence of the Galaxy S7.

the cause of The overheating of the phone according to the reports, remains a mystery, creating a domino effect that says that it is delaying the development of the Galaxy S8, its next flagship phone, although the company has no plans to dispose of the line Note in full.