Samsung's Galaxy Note 7 losses expected to eclipse $5 billion

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Recalled Samsung phones.
(Image credit: George Frey/Getty Images)

Samsung believes it will lose more than $5 billion after attempting to salvage, and then scrapping, its new Galaxy Note 7 smartphone, which has a disastrous tendency to burst into flames, CNN Money reports. The South Korean company said Friday that the recall and discontinuation of the product would cost it around $3 billion for the current and subsequent quarters.

This comes after Samsung already reduced its operating profit by $2.3 billion for the previous quarter. Samsung is expected to push its alternative smartphones, the Galaxy S7 and S7 Edge, to make up for the recall of 1.9 million Note 7 phones and their faulty replacement phones in the U.S, ABC News reports.

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Jeva Lange
Jeva Lange

Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.