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.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
-
Chicken with Steph's spiceThe Week Recommends This Caribbean-inspired recipe is mouthwateringly delicious
-
A peaceful seaside village in TurkeyThe Week Recommends Çıralı has been spared the 'scourge' of all-inclusive resort development
-
Tax plans spell trouble in the North SeaTalking Point Labour’s tax plans are whipping up a storm. Are the worries of opponents justified?
-
Empty-nest boomers aren't selling their big homesSpeed Read Most Americans 60 and older do not intend to move, according to a recent survey
-
Brazil accuses Musk of 'disinformation campaign'Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
-
Disney board fends off Peltz infiltration bidSpeed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
-
Disney and DeSantis reach detenteSpeed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
-
Visa and Mastercard agree to lower swipe feesSpeed Read The companies will cap the fees they charge businesses when customers use their credit cards
-
Reddit IPO values social media site at $6.4 billionSpeed Read The company makes its public debut on the New York Stock Exchange
-
Housing costs: the root of US economic malaise?speed read Many voters are troubled by the housing affordability crisis
-
Feds cap credit card late fees at $8speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
