Galaxy Note7 recall will cost Samsung a "heartbreaking amount"
A total of 2.5 million Samsung Galaxy Note7 units were shipped before the company announced a global recall for the phablet over battery fire hazard. Obviously, the step will have a strong financial impact on the tech giant, but just how much the figure is?
When asked about it, Samsung's smartphone business head Koh Dong Jin just said that it's a "heartbreaking amount."
According to analysts, the recall will cost Samsung somewhere around $1 billion. While that's certainly not a small amount, it still represents less than 5% of the South Korean company's projected net income this year. And not to mention the possibility that the company which supplied the faulty battery units (name isn't revealed yet) may also shoulder a part of the recall cost.
For those who aren't aware, around 70% of the Galaxy Note7 battery units were supplied by Samsung SDI Co., while the remaining were provided by Chinese battery maker Amperex Technology.
- 12 Sep 2016
Absolutely right. Now they face almost a mountain task and losing credibility too! A Note phone is so much different compared to other phones so I was really very surprised too seeing Samsung change(lose) track. You are right mate, it battery was n...
- 12 Sep 2016
I posted earlier on my comment regarding the Note7. I am a Samsung Note4 user but I can certainly tell you that Samsung has completely lost track of what defines a Note smart phone. Until Note4 Samsung was doing very great and had the largest market...
- 07 Sep 2016
No news channels talked about it Nobody really were like go to the s5 everyone kept their phone and apple didn't do anything about it So calling out a company isn't what is most important It's the company doing something about it