According to a recent report, it was estimated that the entire debacle with the Samsung Galaxy Note 7 would cost the company a whopping $17 billion, and it seems that the numbers might be pretty close. According to Samsung’s own estimates, they claim that the fallout from the Note 7’s recall will cost the company mid-3 trillion won.According to Samsung, “The company already allocated the expected direct cost from the discontinuation of Galaxy Note7 sales in its third quarter earnings guidance revision announced on Oct. 11, but expects the drop in revenue from the discontinued sales to continue to have a negative impact on operating profit for the next two quarters. The negative impact is estimated in the mid-2 trillion won range for the fourth quarter of 2016 and at approximately 1 trillion won for the first quarter of 2017.”
For those wondering, 3 trillion won works out to be around $3 billion, and note that this is just for Q4 2016 and Q1 2017. The earlier $17 billion is based on how many Note 7 phones Samsung would have sold during the product cycle, so if we imagine that the phone is being sold for a year or so, it could have added up to somewhere around that amount, give or take.
We had also reported earlier that due to the recall and the costs of the recall and discontinuation, some of Samsung’s R&D projects would have to be delayed or cancelled, so as you can see this definitely isn’t an isolated problem.
Filed in . Read more about Galaxy Note 7, Galaxy Note 7 Recall and Samsung.
