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World

Note 7 recall shock sinks Samsung profits

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World

Note 7 recall shock sinks Samsung profits

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COMING UP:Note 7 recall shock sinks Samsung profits

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Transcript

00:00:01
>> Samsung earnings burned by the Galaxy Note 7, the company on Thursday posting mobile earnings down 98% from a year earlier. The lowest in nearly eight years, barely avoiding its first ever loss. Samsung vowing it will bounce back after a worldwide recall of its flagship phone after a flaw that caused dozens of Note 7s to explode or burst into flames.
00:00:25
Reuters' Vincent Lee says the company is looking beyond potential problems with the battery.>> They are basically now saying they're looking over every single things. Every hardware component, software, other manufacturing processes involved in the production of the phone, to try to get to the bottom of this. They've now got third-party investigators looking into this to try to determine exactly what went wrong, which will probably be important because there may be doubts about whether Samsung has diagnosed the problem correctly given what has already happened.
00:00:54
>> Investors are expecting sweeping management changes in response to the Note 7 disaster and analysts say in the near future there's little room for mistakes.>> They'll have to do really well with the new flagship models and the Galaxy S8 and the Note 8, if it is going to be called that.
00:01:11
The problem now is if they can't identify the problem with the Note 7, what exactly went wrong, then how can they assure people that there's gonna no safety problems with their new flagship phones? They can make a zero mistake on the new flagship phones, cuz if they make another one they could be toast.
00:01:26
>> Sources say the issue's created a chilling effect within the company, delaying a roll out of the Galaxy S8, the next flagship Samsung device. The company saying they'll only release it after safety is guaranteed.