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Note 7 recall shock sinks Samsung profits

Thursday, October 27, 2016 - 01:25

Samsung Electronics reports a 98 percent plunge in profits from a year earlier after a disastrous recall of its flagship Note 7, the lowest in eight years. Ryan Brooks reports

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Samsung earnings, burned by the Galaxy Note 7... The company on Thursday posting mobile earnings down 98 percent from a year earlier- the lowest in nearly eight years- barely avoiding its first ever loss Samsung vowing it will bounce back... After a worldwide recall of its flagship Galaxy Note 7 -over a flaw that caused dozens of them to explode or burst into flames... (SOUNDBITE) REUTERS CORRESPONDENT, VINCENT LEE, (SAYING): "They are basically now saying they are looking over every single thing, every hardware component, software, processes involved in production of the phone, to try to get to the bottom of this, they've now got third-party investigators looking into what went wrong. Which will probably be important because there may be doubts as to whether Samsung has diagnosed the problem correctly, given what has happened." Investors are expecting sweeping management changes in response to the Note 7 disaster... SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "It's the reputational damage. The high end Smartphone market is increasingly competitive and we are seeing with other companies, they are struggling with regards to sales growth." Sources say the issue's created a chilling effect within the company- -and delaying a rollout of the next flagship Samsung device... The company saying they'll only release it after safety is guaranteed. ...

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Note 7 recall shock sinks Samsung profits

Thursday, October 27, 2016 - 01:25