“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
The universe is back more in balance now that SamSplode’s been shot down in flames.
As much as their reputation is now in permanent suspicious question (i.e. tainted) can you imagine what having just one more incendiary incident in a future product might do to them completely and terminally as a slavish copying company? (Well if it hasn’t already.)
Scamsham – the company that turns everyday domestic devices into explosive WMD’s (weapons of minor destruction).
Universe will be even more in balance when pain comes to Google and Eric Mole Schidth . They are the true swindling scoundrels !
The very foundation of slavish copying evil ’tis true. For now we will have to be happy with their equally copying lackey Scamsham being laid low.
Peter, you noted Samsung’s “reputation is now in permanent suspicious question.”
With all due respect, I think any rational person would have to conclude Samsung’s desire for profit is exhibited by total lack of management ability & no concern whatsoever for the safety of both their customers and the company they run.
Management at Samsung is criminally negligent! They have no business running a company.
I was being kind (hah!). Your statement more accurately describes the situation. SamSplode lackeys admit the ignorant disconnect from the top to the engineering side. (But I’ll bet you could find one or two Shamdung engineers who were overwritten and who knew it would be disastrous if released. But that might be too kind an assessment as well. I prefer to think all were hit hard broadside by their technological hubris & overconfidence. Pride before flaming fall works for me.)
If you look very closely, there is a tiny “Apple” symbol on the Note 7 batteries. Be careful of your supply chain, Samsung! /jk
It is simply a mathematical probability to them. If 1% of your phones are bad and you replace them with the same phones, there is a 99% chance that they all are good . . . see! Now I, too can work for Samsung.
They deserve every stitch of grief they are getting, even from the Apple fans…
I wonder how the US supreme court (Specialy Judge Who) will protect its golden boy (samsung) from this disaster.
If this was apple, they had already shutdown the entire company.
Samsung has destroyed their access to the US market…in other words, justice.
Has anyone heard the rumor about the upcoming samsung phone ‘Galaxy Fire’ (no joke)?
The probably did not anticipate they would have that kind of issue with its current galaxy note.
I think here on out companies will rethink mobile device or electronic products with the word “Fire” in them. Scatsham would be idiotic if they did so now, adding fuel to the already considerable bonfire. It would remind customers of a strong previous negative.
Gives a whole new meaning to “Fire sale on Black Friday”
Even with all of this, there are Samsung fan-boys who are deciding to keep their Note 7s, thus endangering all of us. There is no viable way to keep these incendiary devices off of public transport, elevators OR EVEN airplanes. Period. The FCC or another agency needs to direct all cellular providers to cut of service to all of these phones imediately. The tech is there to do it. Or perhaps samsung has a way or google’s android team. This is a public safety issue as serious as a potential terrorist attach. Do it now.
You’re right. The fact that they willingly own these devices already proves they aren’t the sharpest pencils in the box. “I’m sorry” won’t cut it if they take a plane and hundreds of people down due to their own continued stupidity.
He said “taint.” huh huh huh!
Enough time has elapsed for ScamSplod💣Not💣7 owners to exchange their phones for something that doesn’t explode. From now on anyone caught with a ScamSplod💣Not💣7 should be arrested as a menace to public safety and have their phone confiscated. Replacement cost after confiscation is responsibility of the owner. Maybe that will get them to get their phones replaced. 🖖😀⌚️
Is it illegal to walk in to a crowded movie theatre and yell “Samsung!”?
I know why. It’s a rip off copy cat POS of the iPhone(real thing).
I am no expert, but since Samsung is unable to find a hardware origin for the fires/explosions, I am beginning to suspect Android OS itself in conjunction with shoddy design may be the cause. This is a problem that will continue to recur with an one size fits all inferior operating system trying to operate increasingly complex hardware designs
I’ve posted about this previously, but it’s not an OS problem. It may well be specific, however, to bad software Samsung is using to run their phone batteries. That Note 7s have blown while ‘Off’ is fascinating and may indicate there is a hardware component as well. I want to see the third party evaluations of exploded phones in comparison to general Note 7s. Hopefully, the facts won’t be buried.
Not to be outdone by either of the antennagate or scuffgate scandals, the hobbled South Korean dishwasher maker bring us boardingGate.