Galaxy Note 7 issues damage Samsung ´s profits

Samsung has realised the full extent of the demise of its flagship smartphone, the Galaxy Note 7, after recording a 30% plunge in its operating profits in its latest quarterly earnings report.

The South Korean phone-maker was forced to discontinue the device after numerous reports of it catching fire or exploding led to the exposure of a fault within its battery. After an initial recall, Samsung completely halted sales of the Note 7 in early October.

The company's mobile operating profit fell a devastating 96%, as consumers look to other brands such as Apple, which has recently released a new version of its big-selling iPhone range.

Operating profit on the whole fell to 5.2trn won ($4.6bn) for the quarter, its lowest figure in the last two years.

Samsung's share price fell 12% in reaction to the earnings report on Thursday.

Co-chief executive of the firm J.K Shin apologised for the fiasco involving the Note 7 and said that the company would embark on a mission to regain consumer confidence.

"We know we must work hard to earn back your trust and we are committed to doing just that," said Shin following the release of the results.

Investors in the company have been calling for an upheaval of its management structure following the debacle, but have backed the appointment of Lee Jae-yong to Samsung's board of directors.

Lee is widely expected to take overall control of the electronics firm when his father Lee Kun-hee steps down from his position as chairman. Some have criticised the move, saying the appointment is not based on merit.