The flame-out of the Samsung Galaxy Note 7 has hit the world’s largest smartphone maker hard. Samsung reported their third quarter net income was down 17 percent from last year on Thursday.

The fiasco revolving around the recall of the Note 7 - once intended as its flagship cell phone model - caused sales to fall 7 percent and operating income fell 30 percent in line with the company’s guidance earlier this month. Samsung predicted a $3 billion-plus loss in profits for the next two quarters.

"Samsung has lost consumer confidence, but I think it still has at least one more chance. Rather than rushing to release the next product, it should conduct a thorough inspection and explain the results of its investigation into the Note 7," said HMC Investment Securities analyst Greg Roh.

The chance for forgiveness will come in March 2017 when the Galaxy Note 8 is expected to hit stores.

The company is seeking shareholders' approval to appoint Lee Jae-yong, the only son of its ailing chairman, as a board member. Lee currently serves as vice chairman of Samsung Electronics.

kbd/gsw (AFP, AP)