Samsung has been making the headlines over the past week as Galaxy Note 7's began suffering from critical battery failures, which led to some devices exploding. Since then, Samsung has gone ahead and issued a recall of these devices but the process is going to be far from cheap, as it could end up costing the company close to $1 billion.
Apparently Samsung has already sold 2.5 million Galaxy Note 7 units since launch a few weeks ago and according to a report from Bloomberg, it is going to cost an awful lot of money to get those back and replace them.
At the moment, it isn't clear whether or not Samsung's battery supplier will share some of the costs associated with the recall. Either way though, even with costs as high as $1 billion, that represents just under 5 percent of Samsung's projected net income for the year so the financial impact will be short term.
Aside from that, as long as Samsung turns things around in a timely manner, it should also minimise any damage to its reputation.
Discuss on our Facebook page, HERE.
KitGuru Says: Things appeared to be going well for the Galaxy Note 7 sales-wise until this hit. Hopefully Samsung can get replacements out to those affected fairly quickly. Were any of you planning on picking up a Galaxy Note 7 soon? Is the recall going to change that at all?
Well they promised us a sure fire hit, has anyone checked to see if maybe they are supposed to be charged underwater?
Google is paying 97$ per hour! Work for few hours and have longer with friends & family! !mj78d:
On tuesday I got a great new Land Rover Range Rover from having earned $8752 this last four weeks.. Its the most-financialy rewarding I’ve had.. It sounds unbelievable but you wont forgive yourself if you don’t check it
!mj78d:
➽➽
➽➽;➽➽ http://GoogleFinancialJobsCash78MediaTeamGetPay$97Hour… ★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★::::::!mj78d:….,…..
I am getting paid roughly $6000-$8000 monthly from freelancing at home. For everybody prepared to do basic freelance task for some h daily from your home and get solid income while doing it… Test this task UR1.CA/pm79t