Some analysts have estimated that the cost of the recall and lost sales will be greater. They predict that cost associated with the recall, production of safe units and lost sales may translate into a nearly $5 billion hit for Samsung this year. If that is the case it would deal a major blow to Samsung Mobile’s sincere recovery efforts. This is why the slight increase in profit is attributed to the company’s other businesses. Its memory chip business will continue to pad the bottom line aided by rising demand from customers like Apple. The chips division is actually expected to report its highest quarterly operating profit in four quarters. Samsung’s display business is also expected to pick up some of the slack as the adoption of OLED displays increases because Chinese manufacturers like Vivo and Oppo are using them for their smartphones.
