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South Korean giant Samsung Electronics Co Ltd on 27 Oct said that its net profit fell 30 percent in the third quarter by the withdrawal of its Galaxy Note 7 Smartphone plummeting to its lowest level in two years.

Samsung's Profit Plunges - The Statistics

Overall operating profit of the tech giant for the three months i.e. between July to September fell 30 percent to 5.2 trillion won from nearly 7.4 trillion attained a year earlier, while revenue fell 7.5 percent to 47.82 trillion won.

The Note 7 Fiasco

The world's largest Smartphone manufacturer Samsung had first tried to replace the phones, but reports began coming in of the new handset also catching fire. Then manufacturers discontinued making the Note 7.

Samsung still has no clue what caused some of its phone batteries to erupt. However, Samsung is enquiring every detail of the Note 7 batteries. Samsung manufactured 2.5 million Note 7 devices, which it later recalled.

Samsung launched it's Galaxy Note 7 before the launch of iPhone 7, with the intention of breaking the iPhone 7 sell. However, within two months Galaxy Note 7 turned into scrap. Samsung expects its recovery from sales of the Galaxy S7 and S7 Edge.

How It Has Affected South Korea

Samsung accounts for around 17 percent of South Korea's GDP, and the Galaxy Note 7 fiasco has affected the national economy.

On Thursday, Oct 27, Samsung shareholders accepted the appointment of Lee Jae- yong as an executive director on the company's board, also the company's inheritor.

The Gist

Samsung Galaxy Note 7 launched on 2 August with the features of a 5.7-inch Quad HD double super AMOLED display, 64 GB internal memory, 4GB RAM and 256 GB expandable storage. The company claimed it as the toughest competitor of Apple iPhone 7.

However, the phone had problems with the battery's explosion. The company faced a lot of criticism and loss of rapport with the customers and tech experts on this account. It is still in the rest and recoup phase after the debacle.

What is In?

Samsung stated that its phone unit would promptly focus on "enlarging sales of the upcoming flagship product, besides retrieving consumer's confidence."

Samsung is soon unveiling its flagship Smartphone Galaxy S8 in upcoming February. The company is also launching Galaxy S7 Edge Smartphone in beautiful blue coral color on Nov 5 in Singapore. The Korean tech giant is resolute in overcoming this obstacle.