Technology and gaming content trusted in North America and globally since 1999
8,540 Reviews & Articles | 59,944 News Posts

The Note7 fiasco could cost Samsung up to $17 billion

On Tuesday evening, it has been confirmed that Samsung is permanently ending the production of the Galaxy Note7 devices

Lana Jelic | Oct 11, 2016 at 05:23 pm CDT (1 min, 42 secs reading time)

While it was predicted that the first recall of the Note7 devices could cost Samsung up to a billion dollars, the predictions for the second withdrawal of this device from the market are much worse. Analysts say the amount could climb to as much as $17 billion dollars, according to Reuters.

The Note7 fiasco could cost Samsung up to $17 billion | TweakTown.com

In early September, Samsung announced a global recall of 2.5 million Note7 devices due to faulty batteries that cause the phone to ignite, and on Tuesday the crisis took even worse proportions.

Samsung has instructed users to return all the Note7 devices, including replacement ones, and global operators to stop selling the Note7.

On Tuesday evening, it has been confirmed that Samsung is permanently ending the production of the Galaxy Note7 devices.

Earlier, Song Myung-sub, an analyst at HI Investment Securities, told Reuters that in case that Samsung stops the production of the Note7, they would lose the sales of up to 19 million phones, or nearly $17 billion, which is a big increase compared to the $5 billion in missed sales and recall costs analysts initially expected Samsung to incur under the assumption that the firm would resume global Note 7 sales in the fourth quarter.

Samsung now has to turn to its next flagship, the Galaxy S8, which should be announced at the end of February.

Last updated: Sep 1, 2017 at 06:05 am CDT

NEWS SOURCE:reuters.com
Lana Jelic

ABOUT THE AUTHOR - Lana Jelic

Lana has a passion for technology and science. She spends her time looking for the latest and most interesting technology and science news. Her passion is in gadgets, wearables, and other cool and interesting applications of technology or science. She also spends her free time gaming in MMOs like World of Warcraft. She has prior experience covering technology for publications and breaking news. If she’s not doing either, you might just find her exploring the metaverse in VR. Lana wants to expand TweakTown’s coverage of mobile, wearables and gadgets while also bringing her experience with science and general tech to TweakTown. Her area of coverage is around science, technology, smartphones, wearables, and general neat gadgets. She hopes to one day be able to drive around in her self-driving car while she schedules an appointment for a SpaceX trip to the moon on her smartwatch.

Related Tags