Here’s how much the Galaxy Note 7 debacle is costing Samsung: About $3 billion.
The South Korean company on Thursday said discontinuing its device, which it recalled for a second time this week for battery issues, will hurt its operating profit in the mid-3 trillion won range from the fourth quarter of 2016 through the first quarter of 2017. That’s about $3 billion.
The Note 7, which hit the market in mid-August, was expected to solidify Samsung’s lead in the mobile market after a strong showing with its Galaxy S7. The company had just begun to regain its swagger after stumbling the previous year with lackluster products.
Then came the battery problems, which caused some units to overheat and catch fire. Samsung issued a global recall of the popular device last month. But then some replacement units started seeing the same problem. That caused Samsung to issue a second recall this week and permanently stop production of the device. It also is offering Note 7 owners $100 to exchange the device for another Samsung phone.