The entire tech industry and perhaps the whole world knew that it was only a matter of time that Samsung will announce something disappointing due to the recent Galaxy Note 7 fiasco. Today, various sources and even the company itself validated that its operating profit has gone down 30 percent.
In Samsung's recent press release, the Korean tech giant admitted that financial results for the third quarter of this year marked a 30 percent dip in revenue. Samsung's Information Technology & Mobile Communications Division was particularly hit after the company decided to discontinue the operations of the Galaxy Note 7.
Wired reported that from July to September, Samsung's operating profit peaked at 5.2 trillion won, or $4.6billion. When compared to the same cycle last year, it saw a decrease of 2.19 trillion won following a profit of 7.39 trillion won in the third quarter.
Engadget meanwhile said that the sudden decline was the "lowest amount of profit" Samsung's mobile arm has ever produced since the end of 2008. It added that the recall of the Galaxy Note 7 will cost Samsung around $2.3 billion in net loss.
Although its IM Division took the dip head on, shipments of Samsung's other flagship devices like the Galaxy S7 and S7 Edge "remained solid due to continued stable sales". The same can be said for their mid-range devices such as the Galaxy A and J. Samsung will also revamp its proceeds in the fourth quarter by supplying the demand for new Smartphones and tablets while at the same time, maintain profitability" by shipping new models of mid-tier to low-end devices.
On the light side, Samsung posted a "significant growth" in its semiconductor business as it particularly cited the rise in the demand for memory chips used in high-end mobile and server products. Their OLED division also played well as TV panel shipments "grew significantly".
Samsung still has enough firepower to gradually fill in the void left by the Galaxy Note 7. Its Consumer Electronics Division and Visual Display and Digital Appliances business are a promising sunshine for the company mainly because it continues to develop "premium products" such as the Quantum Dot SUHD and curved TVs.
