At Samsung, strong third-quarter chip sales to ease sting of Note 7 hangover

A man walks past an advert for the Samsung Galaxy Note 7 in London, Britain, September 2, 2016. REUTERS/Luke MacGregor

SEOUL: Scarred by the global recall of its flagship smartphone, Samsung Electronics Co is set to report on Oct 7 it still expects a small rise in third-quarter profit, analysts say, with healthy sales of memory chips and displays easing the pain. 

Lost sales and expenses tied to the recall of at least 2.5 million Galaxy Note 7 handsets to fix battery problems could cost the firm nearly US$5bil (RM20.70bil) this year, some analysts have said. That could sap momentum from a nascent recovery in Samsung's mobile business, an underperformer in recent years.