Samsung isn’t having a good time of it lately, what with its flagship phablet blowing up all over the place and everything.
And the company is expecting some pretty eye-watering financial fallout from the Note 7 saga, increasing the forecasted cost of the global recall to its bottom line from £1.9bn to at least £4bn.
Sammy expects profits to fall by at least 3tn won (£2.2bn) in the six months to the end of March, after slashing its operating profit estimate for the third quarter by £1.9bn.
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In total, then, the firm is set to suffer total losses caused by the Note 7 to £4.1bn. In other words, the phone’s disastrous launch is going to cost the company big, as well as put a considerable dent in its reputation.
Of course, the South Korean firm will be looking to distract from the whole affair as quickly as possible, with some analysts suggesting it will launch its next big smartphone, thought to be the Galaxy S8, earlier than it orginally planned.
This could make up for at least some of the financial loss caused by the Note 7’s explosive tendencies.
Samsung was forced to recall the Note 7 globally after several reports emerged of the handset overheating, and in some cases exploding.
The South Korean firm initially blamed a battery fault, issuing supposedly safe handsets as replacements, before recalling them after further reports of overheating surfaced.
Following this, Samsung was forced to cease production of the Note 7, advising owners of the handset worldwide to turn off their devices immediately and return them for a refund.
However, in the UK, Royal Mail has said it will not allow the fire-prone handsets to be returned via its network, leaving numerous customers in limbo.
WATCH: Galaxy Note 7 Review
Let us know if you’ve experienced any Note 7 problems in the comments.
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Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.