The company faces a lawsuit filed by Australia's consumer watchdog over alleged misleading advertising that could result in multi-million dollar fines.
Samsung said initial findings showed that the issues could be associated with impact on exposed areas of the hinges. It also said there were instances where substances found inside the device affected the display performance.
Samsung's new folding phones appear to be breaking after just a couple of days, despite being priced at almost $2,000.
The world's biggest memory chip and smartphone maker posted the profit despite the fact that its de facto leader was jailed for bribery and having faced a recall of its flagship Galaxy Note 7 device.
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