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.
-
Brazil has a scorpion problemUnder The Radar Venomous arachnids are infesting country's fast-growing cities
-
Why Rikers Island will no longer be under New York City's controlThe Explainer A 'remediation manager' has been appointed to run the infamous jail
-
California may pull health care from eligible undocumented migrantsIN THE SPOTLIGHT After pushing for universal health care for all Californians regardless of immigration status, Gov. Gavin Newsom's latest budget proposal backs away from a key campaign promise
-
Warren Buffet announces surprise retirementspeed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff displaySpeed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loomSpeed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panelsSpeed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of businessSpeed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pausesSpeed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocksSpeed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor dealSpeed Read The strike could have shut down major ports from Texas to Maine
