Between never ending patent lawsuits with Apple and the Galaxy Note 7 recall, Samsung’s bills are – wait for it – exploding.
The South Korean electronics giant says it’ll lose approximately $3.1 billion (about £2.53b, AU$4.08b) on the Note 7 recall over the next six months.
That’s more than triple the first recall at $1 billion (about £820m, AU$1.32b). Unfortunately for Samsung, the Galaxy Note 7 replacements caught on fire, too, demanding another recall and the ultimate cancellation of the phone.
Today’s new figure is on top of the $2.3 billion (about £1, AU$1) hit it just took on third quarter earnings, according to Bloomberg.
In total, that’s $5.4 billion in losses due to the overheating phone, which has hurt the Samsung brand and robbed Android owners of an otherwise enviable smartphone.
Its plan to move forward
Samsung is down, but not out. The broader company is still profiting heavily from its semiconductor business and it is relying on the strength of the smaller S7 series to maintain its mobile division.
“Moving forward, Samsung Electronics plans to normalize its mobile business by expanding sales of flagship models such as the Galaxy S7 and Galaxy S7 Edge,” Samsung said in its press release.
“Additionally, the company will focus on enhancing product safety for consumers by making significant changes in its quality assurance processes.”
The S7 series will have to carry the brand until February, when the company is expected to announce the Samsung Galaxy S8 at MWC 2017.
posted by ConnectMe