Trust isn’t the only thing that has taken a hit over at Samsung. With the company officially discontinuing production of the Note 7 and with the CPSC issuing a second recall, this will no doubt affect the company financially. Last we heard, it could potentially cost Samsung a whopping $17 billion in potential revenue had the phones been sold without any incident.
However it seems that’s not all. Because of the amount of money that Samsung will have to spend recalling the phones the second time round, and the amount of money they have lost in terms of opportunity costs, a report from Business Korea (via PhoneArena) has suggested that this could end up affecting Samsung’s other R&D projects that will now have to be put on the backburner due to insufficient funds.
This isn’t to say that Samsung is broke (far from it), it’s just that the budget or money that they anticipated from Note 7 sales is no longer in the picture, meaning that money that should have been set aside for other R&D projects is now considerably less. Last year Samsung had spent a whopping $14 billion on R&D alone, so we have to wonder how badly the Note 7 recall will affect this year’s budget.
The report claims that as a result, some projects will either be delayed or even scrapped entirely. We’re sure that Samsung will eventually bounce back from this snafu, but any potential delay or setback would no doubt allow their rivals/competition to close in on them.
Filed in . Read more about Galaxy Note 7, Galaxy Note 7 Recall and Samsung.
