Galaxy Note7 recall will cost Samsung a "heartbreaking amount"
A total of 2.5 million Samsung Galaxy Note7
units were shipped before the company announced a global recall for the phablet
over battery fire hazard. Obviously, the step will have a strong financial
impact on the tech giant, but just how much the figure is?
When asked about it, Samsung's smartphone
business head Koh Dong Jin just said that it's a "heartbreaking
amount."
According to analysts, the recall will cost
Samsung somewhere around $1 billion. While that's certainly not a small amount,
it still represents less than 5% of the South Korean company's projected net
income this year. And not to mention the possibility that the company which
supplied the faulty battery units (name isn't revealed yet) may also shoulder a
part of the recall cost.
For those who aren't aware, around 70% of the
Galaxy Note7 battery units were supplied by Samsung SDI Co., while the
remaining were provided by Chinese battery maker.
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