It shouldn’t come as a surprise to learn that Samsung is starting to feel the financial effects of the Galaxy Note 7 fiasco. The South Korean company announced its third quarter results today, which show a 30 percent decline in profits compared to the same period last year.
Samsung made 5.2 trillion won ($4.7 billion), in operating profit for the third-quarter of 2016. The figure is down 2.19 trillion won ($1.93 billion) from Q3 2015. Revenue for the quarter was 47.82 trillion won ($42.03 billion), marking a YoY decline of 30 percent also.
The firm’s IT and Mobile Communications division saw sales drop 15 percent compared to the same period one year ago, with profits falling 95 percent to 100 billion won ($87.8 million). The company said the decline was “due to the Galaxy Note discontinuation.”
Earlier this month, Samsung predicted that it would beat third-quarter profit estimates, but revised its forecast a few days later as the Note 7 situation worsened.
Smartphone sales were down last quarter to 75.3 million units, a ten percent YoY decline from the 83.8 million shipped during the same period in 2015. This marks Samsung’s slowest growth rate in two years, according to Strategy Analytics (via PC World). The Q3 2016 sales figure doesn’t include the Note 7; if it did, the number would be around 79 million units, which is still a decrease compared to last year.
Going forward, Samsung will “focus on expanding sales of new flagship products with differentiated design and innovative features, as well as regaining consumers’ confidence.” With the Galaxy Note 8 all but confirmed for a release next year, the company will be hoping it helps erase the memory of a very bad 2016.