Samsung’s Profits Burn Because of Note 7

It was popular news for everyone not long ago. Videos, pictures, and other forms of publishing showed the Galaxy Note 7 blowing up and bursting into flames. It was supposed to be the device that allowed Samsung to rebound back into the mobile tech race. Unfortunately for them, this catastrophic event put them in negative view of the public eye.

Because of the overwhelming amount of recalls that transpired, the Note 7 was subsequently stopped from any more production. Consequently, the profits severely plummeted. The mobile division of Samsung, who is responsible for the Note 7 saw a 96% decrease in profits during their third quarter. This is there lowest profits in nearly 8 years and ultimately caused a sense of panic within the company.

The cause of the exploding devices is still unknown which is causing a delay in the production of any new phones (Galaxy S8). But, the former mobile kingpin told outside sources that they can expect a Note 8 at some point next year.

Source:

Musil, Steven. “Samsung earnings burned by Galaxy Note 7.” Web Blog Post. Cnet, 26 Oct. 2016. Web. 27 Oct. 2016.

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