Amazing news: Galaxy Note 7 fiasco leaves Samsung mobile profits a smoldering ash pile

Since the emergence of the mobile phone explosion, as expected, in the September quarter, samsung’s profit has been catastrophic, with the company’s mobile unit posting a 96 percent decline to 100 billion Korean won (about $87.9 million) as compared to the same time last year.

In the third quarter, Samsung reported net operating profits of 5.2 trillion won, down 30 percent from 7.4 trillion won in the year ago period. Revenues plunged from 51.7 trillion won in 2015 to 47.8 trillion in the most recent quarter, a negative 7.5 percent change.

It is important to note that samsung’s mobile unit management a anemia operating profit of 100 billion won, down from 2.4 trillion won in the year ago quarter. By comparison, Samsung earned 4.32 trillion won for the three months ended June. The result marks the lowest quarterly watermark for the Korean tech giant’s mobile arm since the first Galaxy device launched in 2009.

For investors, the plunge in profits was expected, as Samsung cut estimates by $2.3 billion earlier this month in anticipation of blowback from the Galaxy Note 7 debacle.

Referred to as the “of samsung Note 7 problems”, shortly after August phablet equipment problems. Reports of explosions and fires initially surfaced in South Korea and spread to international launch countries, including dozens of incidents in the U.S. Later that month, Samsung halted shipments of the fiery device and issued a voluntary global recall of some 2.5 million devices.

Companies are working hard to fix the problem, thought to be related to cell phone battery or charging mechanism, but is considered to replace the unit for the safe use of the final suffer the fate of the same as the original. Samsung officially halted sales and replacements of all Note 7 products on Oct. 10, and announced a permanent discontinuation of the line a day later.

In search of a silver lining on the Note 7 mushroom cloud, Samsung reminded investors that Galaxy S7 sales remain “solid” as shipments of mid- to low-end handsets continue to grow.