Galaxy Note 7 Recall May Cost Samsung as Much as $1 Billion


After acknowledging that some units of the Galaxy Note 7 that it had been shipping over the last few weeks may be having faulty battery units that put them at risk of exploding, catching fire and risking the lives of their users and surroundings, Samsung announced that it was suspending sales of the device and halting shipments. The company also announced a global recall of all Galaxy Note 7 units that had been sold so far.

What we don’t know, yet, is how much it would cost the Korean giant to replace all the 2.5 million units it is estimated to have shipped in the short period that the Galaxy Note 7 was in the market. According to Bloomberg‘s analysis, the figure could be a mind-blowing $1 billion.

Samsung has offered Galaxy Note 7 owners further options other than a full replacement of their units. In the US, for instance, Note 7 buyers can opt to go for one of Samsung’s other 2016 flagship devices, the Galaxy S7 and S7 Edge or just get their money back. This will definitely come at a huge cost to the company and further disadvantage since any lead the Note 7 had over Apple’s iPhone 7 which launches next week has been erased and its (the Note 7) reputation badly damaged.