Samsung Electronics has reported a sharp decline in profits, driven by the discontinuation of its Galaxy Note 7 after problems with overheating led it to recall every phone.
The Korean technology giant saw revenue for the third quarter decrease by 3.87 trillion won (£2.7bn) year on year, to 47.82 trillion won. Operating profit for the quarter was 5.2 trillion won, a decrease of 2.19 trillion won over the same quarter in 2015.
However, it saw improvement in its display panel and consumer appliance segments of the business.
The display panel segment posted 7.06 trillion won in consolidated revenue and 1.02 trillion won in operating profit for the quarter, driven by ‘significant’ increases in earnings of OLED panels and increased shipments of large-sized LCD TV panels.
Looking to Q4, the company expects continued demand growth for OLED panels and a continuation of UHD TV market growth and migration towards bigger screens. Samsung said it will focus on improving sales and profitability in the LDC market by reducing manufacturing costs and enhancing production yields.
In its consumer electronic division, including the visual display and digital appliances business, it reported consolidated revenue of 11.24 trillion won and operating profit of 770 billion won in Q3.
Earnings for Samsung’s visual display business improved year on year, led by increased sales of premium products, such as SUHD and curved TVs, despite global TV demand decreasing.
The digital appliance business saw earnings increase year on year, which was driven by a rise in sales of premium innovative products, such as its Chef Collection kitchen appliances.
In Q4, the company expects to maintain ‘solid’ performance in its visual display segment by increasing sales of premium products and strengthening its year-end promotional activities. In its appliances business, it will continue to focus on its premium product line-up and expand its B2B business, while reinforcing online marketing.
It said it would also create new market opportunities and increase sales by introducing innovation premium products as well as customised products for local markets.