Due to the scrapping of its Note 7 smartphone, Samsung Electronics has slashed its quarterly profit forecast.
The South Korean firm now expects third quarter profits of 5.2tn won ($4.7bn; £3.8bn), which is a third lower than its original estimate of 7.8tn won.
Even though Samsung recalled the Note 7 after consumers reported battery fires, the new ones also experienced same.
Ahead of the profit warning, Samsung shares fell 0.8% on Wednesday.
That added to Tuesday’s 8% fall.
The company has dropped more than $20bn in market value over a two-day period.
According to BBC, Samsung’s shares have fallen on concerns that the current crisis will go beyond the costs of the recall and affect the brand’s overall reputation.
Analysts are suggesting the Note 7 crisis could cost Samsung in the long run, particularly coming just as rivals, such as Google and Apple, have announced new high-end smartphones.
The Note 7 had been seen as the main rival to Apple’s new iPhone 7 model. Samsung’s woes have sent Apple’s shares to a 10-month high.
In September, Samsung recalled around 2.5 million phones after complaints of exploding batteries.
It later insisted that all replaced devices were safe. However, that was followed by reports that those phones were catching fire too.
But on Tuesday, the company said it would permanently cease production of the device and urged owners to turn it off.
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