Exploding Galaxy Note 7 Smartphones Do Little To Slow Samsung Profit Train
Samsung had to issue a global recall of its Galaxy Note 7 phones after it was discovered that the batteries it was using were prone to overheating and catching fire. There were several reports of exploding Galaxy Note 7 devices causing personal and property damage, such as setting ablaze a Jeep Grand Cherokee in one instance.
![Samsung Galaxy Note 7](https://hothardware.com/ContentImages/NewsItem/38906/content/Samsung_Galaxy_Note_7.jpg)
Early estimates had Samsung taking a $1 billion as a result of its recall, and investors reacted by sending its stock spiraling downward. Samsung didn't say how much it ended up costing them to date, though in a brief filing today, it said its operating profit for the July through September period was likely to be 7.8 trillion won (around $7 billion in U.S. currency). That's up from 7.4 trillion won a year ago.
Samsung also said it expects to report revenue 49 trillion won when it issues a full earnings report in October. If so, that would be a 5.2 percent drop for the quarter, which is also less than analysts had expected.
The results include Samsung's Galaxy Note 7 debacle, but stellar performance in its semiconductor and display businesses helped the company weather the storm. That's a good sign for Samsung, especially after a replacement Galaxy Note 7 device recently went up in smoke on a grounded Southwest Airlines plane. Depending on how that situation works out, there might be no saving Galaxy Note 7 sales. However, it doesn't look like Samsung itself will need saving.