Samsung expects profit increase despite Galaxy Note 7 issues

Samsung announced Friday it expects a 5.6-per-cent rise in profits in the third quarter of 2016, despite recent problems with the company's flagship smartphone, the Galaxy Note 7.

The South Korean tech giant expects profits from its core business to reach 7.8 trillion won (7.02 billion dollars) according to its Q3 earnings guidance.

At the same time, sales at the company are expected to sink by 5.2 per cent in the third quarter, to 49 trillion won.

The profit figure was higher than expected, with the cost of a worldwide recall of the Galaxy Note 7 phone being offset by strong returns in Samsung's data chip and displays sectors.

The recall was launched last month after Samsung admitted that the so-called phablet, which was originally launched on August 19 and sold in several countries, could burst into flames while charging.

Sales of the phone have now resumed.

Last update: Fri, 07/10/2016 - 10:18

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