Sales of the Galaxy S7 and S7 edge begin in around 60 countries on March 11. / AFP PHOTO / JUNG Yeon-Je
Shares of Samsung Electronics Co Ltd traded slightly higher on Friday (October 14) morning after the South Korean electronics giant said it expected to take a greater profit hit from the demise of its fire-prone Galaxy Note 7 smartphones.
Samsung shares were up 0.8 percent as of 0008 GMT, versus the wider market’s 0.6 percent gain.
Samsung said it expected to take a hit to its operating profit of about $3 billion over the next two quarters due to the discontinuation of the Note 7.
The South Korean tech giant said in a statement it expected the blow to profit to be in the mid-2 trillion won range in the October-December period and about 1 trillion won ($900 million) for the first quarter of 2017.
Samsung Electronics scrapped its flagship Galaxy Note 7 smartphone on Tuesday (October 11) less than two months after its launch, dealing a huge blow to its reputation and outlook after failing to resolve safety concerns.
Shares in Samsung have fallen about 8 percent this week on news of the withdrawal of the Note 7.
(c) Copyright Thomson Reuters 2016.
