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Samsung Galaxy Note 7 Recall Said to Cost Company Over $1-Billion

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As covered last week, following reports of some Samsung Galaxy Note 7 handsets ‘exploding’ due to faulty battery cells the company decided to issue a global recall on the product just days after the first shipment left the warehouses.

The extent of the financial setback this expensive exercise might cause Samsung has been kept officially quiet, with only the company’s President of its mobile division, Dongjin Koh, revealing that it would be a ‘heartbreaking amount’. Unofficially, the analysts have been at work trying to ascertain an exact amount and have figured Samsung will be looking to lose over $1-billion after the Galaxy Note 7 recall.

This crushing report comes after it was said that Samsung was on it’s way to it’s highest quarterly profits in two years.

This also couldn’t have come at a worse time for Samsung, especially with Apple set to release two new iPhone models this week on Wednesday 7th September, and Google priming it’s Nexus rebrand with the Pixel smartphones being launched on 4th of October.

For those who missed the official statement from the Samsung Newsroom (Friday 2nd September):

Samsung is committed to producing the highest quality products and we take every incident report from our valued customers very seriously. In response to recently reported cases of the new Galaxy Note7, we conducted a thorough investigation and found a battery cell issue.

 To date (as of September 1) there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market. However, because our customers’ safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note7.

 For customers who already have Galaxy Note7 devices, we will voluntarily replace their current device with a new one over the coming weeks.

 We acknowledge the inconvenience this may cause in the market but this is to ensure that Samsung continues to deliver the highest quality products to our customers. We are working closely with our partners to ensure the replacement experience is as convenient and efficient as possible.”

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