Samsung slashes profit forecast over Galaxy Note 7 crisis

Samsung Electronics has slashed its quarterly profit forecast due to the scrapping of its Note 7 smartphone.

The South Korean firm now expects third quarter profits of 5.2tn won, which is a third lower than its original estimate of 7.8tn won, BBC News reports.

The Note 7 was recalled last month after battery fires, but after replacement phones experienced the same problem, Samsung scrapped the device.

Ahead of the profit warning, Samsung shares fell 0.8% on Wednesday.

That added to Tuesday's 8% fall.

The company has seen more than $20bn wiped off its market value in two days.