
(credit: Neilson Barnard / Getty Images)
Less than a month after Samsung recalled all 2.5 million Galaxy Note 7 handsets—including the replacements—the Korean mobile giant announced that it had sustained a notable financial hit during Q3 2016.
According to quarterly earnings released Thursday morning in Seoul, the company’s total quarterly net profit fell 16.8 percent to ₩4.54 trillion Korean ($4.0 billion).
As a result of the failed Galaxy Note 7, the IT and Mobile division’s profit collapsed nearly entirely, hitting just ₩100 billion ($88 million). By comparison, during the third quarter of 2015, that division’s profit was ₩2.40 trillion, or $2.1 billion. That dip in the mobile division was the worst performance in the six years since the Samsung Galaxy first debuted.