[EQUITIES] Recall could reduce Samsung’s H2 profit more than W1tr: analyst
Published : Sep 12, 2016 - 14:30
Updated : Sep 12, 2016 - 14:30
[THE INVESTOR] Samsung Securities on Sept. 12 predicted that Samsung Electronics’ operating profit in the latter half of this year could be reduced by more than 1 trillion won (US$900 million) following the recall of the Galaxy Note 7 smartphone.

The securities firm said the company has been dealing with the recall issue properly, adding that its recent recommendation for customers not to turn on their Note phones due to safety concerns would prevent more accidents.

Despite the prompt response, the firms said, the situation seems to be getting more complicated now and that would affect consumer sentiment and device sales overall.

“Even after the suspended phone sales are resumed, it could take more time for them to get regulatory approval,” said an analyst. “In this case, the company could suffer a loss of more than 1 trillion won in profits.”

Right after the recall, the securities firm had predicted a loss of about 820 billion won.

By Lee Ji-yoon (jylee@heraldcorp.com)
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