Analysts believe that the Galaxy Note 7 recall is going to cost Samsung 1.2 trillion won ($1.08 billion). It was unable to sell the flagship throughout the month of September and is only now gradually resuming sales of the Galaxy Note 7 across the globe. The market expects Samsung to post an operating profit of 7.62 trillion won which would be an increase of 3 percent from the same quarter last year. Overall revenue is expected to be down 1.6 percent from the same time last year at 50.85 trillion won.
Prior to the recall analysts had estimated that Samsung would post sales of 8 trillion won or more as the Galaxy Note 7 was predicted to do very well. Not being able to sell its flagship device for an entire month is obviously going to make a dent on its balance sheet. Nevertheless, the conglomerate’s earnings are expected to receive a boost from its display and semiconductor business which have remained strong over the past few quarters.