Note 7 Recall Costs $5.3 Billion To Samsung
The total costs from recalls of Galaxy Note 7 could cross $5.3 billion to Samsung. The company said in the current and coming quarters the cost may reach about $3 billion.
Note 7 has been discontinued as the device is prone to overheat and catch fire.
The South Korean giant said discontinuation of its flagship device will cost in the mid-2 trillion won range during the period of October-December and another 1 trillion won during the period of January-March quarter.
Samsung had earlier slashed down its third-quarter profit forecast by $2.6 billion.
The company is equipped with enough cash and has other businesses too. It is easy for it to absorb the shock.
Without elaborating Samsung said significant changes would be made in the quality assurance processes to further improve the product safety.
The company also added to be expanding sales of its Galaxy S7 and Galaxy S7 Edge which were released in spring this year.
Meanwhile, it is also rumored Samsung may come up with updated versions of its Galaxy S7 and Galaxy S7 Edge soon even though it is known new iteration of the Galaxy S series arrive in spring. It is true the company would provide a strong incentive to the new versions.
Data reveals over 2.5 million Samsung Galaxy Note 7 were recalled due to unexplained overheating issues.