• In this Oct. 26, 2016 photo, Samsung Electronics Galaxy S7 and S7 edge smartphones are displayed at Korea Electronics Show or KES in Seoul, South Korea. Samsung Electronics said Thursday, Oct. 27 its third quarter profit has plunged 17 percent as Galaxy Note 7 recalls nearly wiped out its mobile profit. (AP Photo/Lee Jin-man)

    In this Oct. 26, 2016 photo, Samsung Electronics Galaxy S7 and S7 edge smartphones are displayed at Korea Electronics Show or KES in Seoul, South Korea. Samsung Electronics said Thursday, Oct. 27 its third quarter profit has plunged 17 percent as ... Galaxy Note 7 recalls nearly wiped out its mobile profit. (AP Photo/Lee Jin-man) (The Associated Press)

  • FILE - In this June 23, 2015, file photo, Lee Jae-yong, vice chairman of Samsung Electronics Co., speaks during a press conference at the company's headquarters in Seoul, South Korea. Samsung Electronics said Thursday, Oct. 27 its third quarter profit has plunged 17 percent as Galaxy Note 7 recalls nearly wiped out its mobile profit. (AP Photo/Ahn Young-joon, File)

    FILE - In this June 23, 2015, file photo, Lee Jae-yong, vice chairman of Samsung Electronics Co., speaks during a press conference at the company's headquarters in Seoul, South Korea. Samsung Electronics said Thursday, Oct. 27 its third quarter ... profit has plunged 17 percent as Galaxy Note 7 recalls nearly wiped out its mobile profit. (AP Photo/Ahn Young-joon, File) (The Associated Press)

  • In this Oct. 26, 2016 photo, a man walks by an advertisement of the Samsung Electronics Galaxy S7 Edge and Gear VR at Korea Electronics Show or KES in Seoul, South Korea. Samsung Electronics said Thursday, Oct. 27 its third quarter profit has plunged 17 percent as Galaxy Note 7 recalls nearly wiped out its mobile profit. (AP Photo/Lee Jin-man)

    In this Oct. 26, 2016 photo, a man walks by an advertisement of the Samsung Electronics Galaxy S7 Edge and Gear VR at Korea Electronics Show or KES in Seoul, South Korea. Samsung Electronics said Thursday, Oct. 27 its third quarter profit has plunged ... 17 percent as Galaxy Note 7 recalls nearly wiped out its mobile profit. (AP Photo/Lee Jin-man) (The Associated Press)

Samsung logs 17 percent drop in profit after phone recall

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Samsung Electronics says its third quarter profit has plunged 17 percent as Galaxy Note 7 recalls nearly wiped out its mobile profit.

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The South Korean tech giant said Thursday that its July-September net income was 4.4 trillion won ($3.9 billion), down from 5.3 trillion won a year earlier.

Samsung, the world's largest smartphone maker, said its troubled mobile business generated just 100 billion won ($87.9 million) in operating income during the quarter because it discontinued the Galaxy Note 7 smartphone. Samsung's mobile business usually contributes more than half of its overall income.

Sales fell 7 percent to 47.8 trillion won ($42 billion), while operating income slumped 30 percent to 5.2 trillion won ($4.6 billion), in line with the company's guidance earlier this month.