Samsung profits set to take £1.9bn hit as Galaxy Note 7 is pulled

The South Korean firm said third quarter operating profit is expected to come in at £3.7bn, down from previous estimates of £5.6bn.

On Tuesday Samsung scrapped its flagship Galaxy Note 7 smartphone, a day after halting sales because of concerns over consumer safety.

The technology giant had delayed the launch of the Note 7 in the UK in September as it investigated and replaced faulty units that were overheating and exploding due to a battery defect.

However, new reports in the US raised further concerns that replacement devices were still catching fire and despite halting production to investigate the issue, the manufacturer has now chosen to completely withdraw the device.

Samsung’s share price has taken a pounding since news of the defect broke, with more than £14.6bn wiped off its market value.

The company also cut its revenue estimate from 49 trillion won to 47 trillion won for the period.