Samsung logs 17 percent drop in profit after phone recall

IndustriesAssociated Press

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.