“Samsung Electronics said Friday that the discontinuation of the Galaxy Note 7 would cost the company about $3 billion during the current and next quarters, bringing the total cost of the recall to at least $5.3 billion,” The Associated Press reports. “The Note 7 discontinuation will cost in the mid-2 trillion won range during the October-December period and another 1 trillion won ($884 million) during the January-March quarter, the company said in a statement.”

“Samsung already slashed its third-quarter profit forecast by $2.6 billion earlier this week, an amount that could wipe out its entire mobile business profit,” AP reports. “That did not include the cost of Samsung’s first recall, which analysts estimated at 1 trillion won to 2 trillion won.”

“Due to unexplained fires and overheating problems, more than 2.5 million Galaxy Note 7 smartphones were recalled before the product was discontinued earlier this week just two months after its launch in August. In the United States, 1.9 million Note 7 phones are subject to the two recalls. Samsung also recalled about 200,000 phones in China and about half a million phones in South Korea,” AP reports. “The botched recall raised questions about Samsung’s initial analysis of the Note 7 phone’s problems. At first, Samsung said a minor manufacturing error in the batteries for the Note 7 was causing the phones to overheat. The problem with the replacements is still unclear. Experts say Samsung may have rushed to conclude the Note 7’s problem was a battery issue and it may take a long time to find the real cause.”

Read more in the full article here.

MacDailyNews Take: Samsung’s products are permanently tainted. 🙂

We’ll drink to that! Interns, TTK!

SEE ALSO:
United States bans all Samsung Note 7 phones on airline flights – October 14, 2016
Beleaguered Samsung’s cellphone dilemma – October 13, 2016
Exploding Galaxy phones: What did Samsung know and when did they know it? – October 12, 2016
Apple or Android phone makers: Who wins more on Samsung’s Galaxy collapse? – October 12, 2016
People are dumping Samsung’s unsafe, exploding phones and upgrading to Apple’s iPhone – October 12, 2016
Social media users mock beleaguered Samsung’s explosive phones – October 11, 2016
Replacement Galaxy Note 7, deemed ‘safe’ by Samsung, catches fire in Scottish hotel room – October 11, 2016
Samsung axes explosive Galaxy Note 7, shares plummet – October 11, 2016
Drexel Hamilton projects 8 million iPhone unit gain for Apple this year alone due to Samsung’s exploding phones debacle – October 11, 2016
Samsung takes multi-billion-dollar hit to end exploding phones fiasco – October 11, 2016
Beleaguered Samsung permanently ceases Galaxy Note 7 production – October 11, 2016