Samsung Kills Off the Galaxy Note 7, Losses Soar Over $5 Billion


Samsung announced last week that they would kill off their Samsung Galaxy Note 7. Because of that, losses will exceed $5 billion.

Earlier this week, the company knocked about $2.3 billion of the operating profit. The Galaxy Note had already been withdrawn from the market before, but these expenses were not included here.

One of the largest smartphone producers in the world will be able to recover from this shock. According to Samsung’s Managing Board, in the third quarter of this year, the company will earn $4.6 billion.

Analysts claim that Samsung will generate most of the profit from the production of smart screens and semiconductors. As the company management declared, significant changes about the quality insurance processes are inevitable.

The South Korean company announced that they would completely stop the production of the Galaxy Note in order to keep their customers safe. The problem occurred when some phones burst into flames while charging. It is believed that there are issues with a lithium battery.

Customers were provided with new phones in those cases, but sometimes even the new devices would set on fire. That is why Samsung decided to kill off the production of that model. Hopefully, they will fix the problem, so this won’t happen again.