Samsung’s Q3 results: Mobile profits down over 95% due to Galaxy Note7 debacle

Samsung has announced its financial results for the third quarter of 2016, and – as expected – the Galaxy Note7 fiasco has taken a huge toll on the company’s profits.

The tech giant’s mobile division reported an operating profit of KRW 0.10 trillion ($87.8 million), which is down 96% from the same time last year. That’s also the lowest figure for the South Korean company in the past eight years.

The company’s overall operating profit for the quarter stood at KRW 5.20 trillion ($4.5 billion), down KRW 2.19 trillion from the profit figure reported in Q3 2015. That’s lowest for the company in past two years.

“The Mobile business saw its earnings decrease significantly QOQ due to the effects of the discontinuation of the Galaxy Note7,” Samsung said in a press release.

“However, smartphone shipments remained solid due to continued stable sales of its existing flagship devices, including the Galaxy S7 and S7 edge, and steady growth in the mid-tier Galaxy A and J series.”

For the fourth quarter, the company is expecting that the the year-end peak season and the popularity of the Galaxy S7 and S7 edge smartphones will help it achieve comparable YOY earnings. “As for 2017, the company anticipates a turnaround with the launch of new flagship smartphones.”