Samsung Electronics has announced an estimate of the impact of the discontinuation of sales of its flagship Galaxy Note7 phablet on operating income in the fourth quarter of 2016 and the first quarter of 2017 at approximately KRW 3 trillion ($ 2.67 billion).
The company has already allocated projected direct costs from Samsung Galaxy Note7 phasing out in its updated third quarter financial statement released on October 11, 2016. However, the company expects the decline in stop-sales revenue to affect operating income over the next two quarters.
The financial impact in the fourth quarter of 2016 is estimated at an average of 2 trillion Korean won ($ 1.78 billion), and in the first quarter of 2017 it was estimated at approximately 1 trillion Korean won ($ 889 million).
Going forward, Samsung Electronics plans to normalize its Mobile division by expanding sales of flagship smartphones such as the Samsung Galaxy S7 and Samsung Galaxy S7 edge.
As promised in the company, it will focus on improving product safety for users through significant changes in quality control processes.