Samsung expects profit increase despite Note 7 recall costs

South Korean electronics giant Samsung expects it to record a profit increase in the three months ending October 1. That’s despite the cost it incurred due to the recall of the Galaxy Note 7 smartphone, whose battery was sometimes found to explode.

It is not yet about the final announcement of the quarterly figures, but about a so-called guidance for the coming results. Samsung will publish the quarterly figures at the end of this month. The guidance shows that Samsung expects an increase in profit.

This is mainly due to strong sales from the divisions of Samsung that supply parts, such as processors and OLED screens. Those have made such a big increase that it would offset the costs for the recall.

It is unknown if Samsung has now completed the recall. An exchanged Note 7 caught fire on Wednesday in an American plane. Several US government organizations are investigating the case, including the consumer protection committee. That can force Samsung to do a new recall for exchanged Note 7s. That is a possibility, speculates financial news agency Bloomberg.

In addition, the American provider Sprint has decided to set up a leniency scheme for customers. Every customer who has bought a Note 7 from Sprint can choose another device free of charge, even if it concerns a copy that Samsung considers safe.