Samsung 3rd quarter profit slipped

Samsung profits slipped significantly as a result of the Note 7 debacle, the company confirmed today in financial results for the third quarter of 2016. The results were in line with adjusted earnings guidance issued earlier this month, showing that the company made 5.2 trillion won (around$4.7 billion) in operating profit for Q3 — a year-on-year decrease of 2.19 trillion won (around $1.93 billion) — on revenues of 47.82 trillion won (around $42.1 billion). The year-on-year drop of more than a third marks the first decline in profits in a year for Samsung, which started to turn around a stagnant financial situation in the third quarter of 2015. The Note 7 situation makes today’s results something of an anomaly in the company’s record — it points specifically to the phone’s very public problems as the cause of the decrease — but it’s yet to be seen whether the fallout from the recall will affect Samsung’s future profits, too.
The first profit decline in a year Prior to its decision to fully recall the Galaxy Note 7, Samsung had anticipated slight increases in operating profit for the quarter. Guidance released on October 7th indicated profits of 7.8 trillion won, up on last year’s figure by a few billion, and revenues of around 49 trillion won. But the company revised these figures a few days later, slashing expected profits when it became apparent that replacement Note 7 devices were also catching fire, forcing a full recall.
The hole left in the balance sheet by the Note 7 was partially filled by a solid quarter from Samsung’s consumer electronics division, but its component profits dipped slightly year-on-year due to changes in DRAM pricing. Samsung also points to the Korean won’s strength against other currencies as a cause for a slight decrease in operating profit.
The real culprit here is the Note 7, however, a fact that Samsung admits. For 2017, the company says it plans to get back to increasing profits by “normalization” of its mobile business, and presumably by hoping everyone forgets about flaming phones.

Samsung offering Note 7 owners 50 percent discount

Samsung is offering Note 7 owners in South Korea the chance to upgrade their phone to a Note 8 for half the price when the as-yet-unannounced handset becomes available next year. The company announced the deal as part of an ongoing exchange program for the Note 7 in its home country, but according to Reuters, there's no word on whether the same offer will be made in the US.
Here's Reuters describing the (Korean language) press release from Samsung: "In a statement on Monday, Samsung said customers who trade in their Note 7 phone for either a flat-screen or curved-screen version of the Galaxy S7 can trade up for a Galaxy S8 or Note 8 smartphone launching next year through an upgrade programme". The news seemingly confirms that Samsung will be continuing the Note line despite the disaster of the Note 7, which was permanently discontinued earlier this month.
According to Reuters, Note 7 owners in Korea will only have to pay half the price of a Galaxy S7 to get their hands on a Galaxy S8 or Note 8 next year. When Samsung was asked if the same deal would be extended to other markets, the company told Reuters this would depend on "the situation in each country."
This is only the latest incentive Samsung has offered Note 7 owners in an attempt to keep them loyal to the company's brand. In the US, for example, Note 7 owners can get $25 in credit if they refund the defective phone or exchange for another device. But, if they exchange it for another Samsung phone, that credit incentive is bumped up to $100. Clearly, the company isn't just worried about getting dangerous Note7s out of customers' hands — they're also afraid the Samsung brand might be tainted for good.

Samsung set-up collection point for Note 7

Samsung is setting up Galaxy Note 7 exchange booths in airports around the world, hoping to stop customers taking the dangerous device onto flights at the last minute. The first of these new "customer service points" appear to have been introduced in South Korean airports, but Samsung has confirmed the booths are opening in airports across Australia, with reports of the desks appearing in the US as well. The booths are located in "high-traffic terminals" before security screening, says Samsung, and allow Note 7 owners to swap their phone for an unspecified exchange device.
According to a report Samsung exchange desk has appeared at the city's international airport — employees for the tech company are on hand to help customers transfer their data onto a new phone.
These are necessary measures, as despite two global recalls for the Note 7 and daily news coverage of its dangers, analysts say that more than 1 million devices are still in use.
And as of last week, it's now a federal crime to bring a Note 7 onto a flight in the US, meaning that anyone caught with the phone risks fines and even imprisonment of up to ten years. Basically, if you're going on holiday any time soon you need to remember to bring your passport, buy some sunscreen, and leave any potentially explosive electronics at home.

Samsung to rebound from the Galaxy Note 7 disaster

Samsung is still in the midst of an unprecedented tech disaster with its Galaxy Note 7, despite officially burying the smartphone earlier this week. While some have speculated the South Korean giant will respond to the loss in profits and consumer confidence by releasing the Galaxy S8 earlier or with ground breaking specs, it turns out a much simpler tactic could be utilised.
According to a leak picked up by Trusted Reviews, Samsung may be planning to launch a 'Blue Coral' version of its non-explosive Galaxy S7 Edge- likely in an effort to draw attention away from the Note 7.
Perhaps the fact the colour was the most popular one for the failed smartphone is just coincidence, but it would make sense to block out public memory of the device by applying its trademark finish to a successful model.
The leak above not only shows off the potentially fresh colour, it also etches in the branding of carrier Verizon- something which suggests it could be in line for a US or exclusive option. Boo.
The move, if it does turn out to be legit, would also replicate a similar tactic by rival Apple. With the iPhone 7 featuring minimal upgrades from its predecessor, the company managed to distract everyone with two new black colourways - one of these crucially being shiny and ultra-pretty. As always, it's best to take these kinds of leaks with a reasonable dose of salt.
After all, we won't know for sure until any official confirmation from Samsung.

Report: Samsung to kill Note brand

Samsung might be planning to kill off the ‘Note’ brand altogether after the Galaxy Note 7 debacle. According to a report from Russian website HiTech Mail, Samsung might be planning to do away with the Note branding, which has been dragged through the mud with the Note 7’s battery explosion incidents for the past few weeks.
Samsung has received a lot of negative attention after not one, but two product recalls of the Galaxy Note 7. The replacement units that Samsung started selling again have also reportedly started to catch fire. After Samsung permanently axed the Galaxy Note 7 smartphone, the company lost 8 per cent in market value; estimated to be $18 billion in market value.
The source in the report said that a survey done by Samsung found that more than 50 per cent of people in South Korea have a negative view of the ‘Note’ brand. The company however will not be retiring its ‘Galaxy’ moniker. Samsung has asked its carrier partners to stop selling all Note 7 phones, which includes the replacement units that they manufactured.
As per a recent report, Samsung has still been unable to make a Galaxy Note 7 catch fire in their test labs, and do not know the real reason behind the phones overheating. The company had hurridly concluded that the incidents were happening to devices that had batteries fitted from a particular factory. The company then started reselling replacement Note 7 phones fitted with batteries from a different supplier, and the problem still persists.

Samsung Halt Note 7 production

In a statement, the tech giant said it was "temporarily" adjusting the production schedule to "ensure quality and safety matters".In a separate regulatory filing, Samsung said it was adjusting the Note 7's production volumes. It said it would issue an update when more details were available.
But Samsung fell short of confirming or denying earlier media reports it had halted production following claims of fires in replacement devices. An unnamed Samsung partner firm source had told Yonhap News Agency Samsung's decision to temporarily halt Note 7 production was done in cooperation with authorities in China and the United States, as two US carriers have stopped exchanging or selling new Note 7 phones. Problems with replacements for the Note 7 model would create a new and potentially costly chapter to a global scandal which has hurt the reputation of the world's biggest smartphone maker. It also could add new dangers for consumers.
Samsung had promised that its new Note 7 with a green battery icon was safe. But the reports of replacement phones catching fire raised doubts about whether the battery was the only problem in the smartphone, as Samsung had initially said.
Samsung had blamed the batteries supplied by one of its two battery suppliers and assured consumers other parts of the smartphones were fine.