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

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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