2016 is ending up being one of the toughest years for Samsung because of the Note 7 controversy. The company has officially chosen to stop the assembling of Note 7 furthermore its deals. Well, doubtlessly the company has lost a huge amount of cash and this is truly the biggest loss for the company so far. Today, Samsung officially annouced that practically $3 Billion loss is expected in upcoming two quarters.
$3 BILLION LOSS EXPECTED!
The company said that the loss is because of Note 7 and they’ll attempt to compensate the losses by increasing the production of S7/S7 Edge. Samsung expected a benefit of around 7.8 Trillion won yet tragically, they got just 5.2 Trillion, which implies about $3 Billion loss. The Q4 of this current year will achieve loss of about $2 Trillion Won though the Q1 of 2017 will bring loss of $1 Trillion Won. Here is what the report on company’s official website says :
The negative impact is estimated in the mid-2 trillion won range for the fourth quarter of 2016 and at approximately 1 trillion won for the first quarter of 2017.The company is releasing these estimates to inform the market on the impact of the Galaxy Note7 discontinuation. Moving forward, Samsung Electronics plans to normalize its mobile business by expanding sales of flagship models such as the Galaxy S7 and Galaxy S7 edge.
Indeed the losses are huge and the company will have to do something very unique to compensate these ( Maybe Something with the Galaxy S8). We hope Samsung will soon be able to come out of these heavy losses. Do share your opinions via comments section. 😀