Samsung expects to lose $3.1 billion in profits over Note 7 recall

Samsung has already revised its earnings forecast for the current quarter, estimating that it will lost $2.3 billion in profits over the discontinuation of the Note 7. The company is now projecting a further $3 billion decline in operating profit over the next two fiscal quarters, bringing the total losses from the recall to $5.3 billion.

Samsung expects that it will lose around mid-2 trillion Won in Q4, followed by 1 trillion Won in Q1 2017. Along with the loss in profits, Samsung is expected to take a $17 billion hit in revenue over potential lost sales of the Note 7.

Samsung is now shifting its focus to the S7 and S7 edge, with the company providing a $100 discount to customers turning in their Note 7s:

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.

Additionally, the company will focus on enhancing product safety for consumers by making significant changes in its quality assurance processes.

With the CPSC issuing a second recall, it is now prohibited to bring the phone onboard an airplane in any capacity. If you’re still holding on to your Note 7, return it now.

Samsung Galaxy Note 7

• Galaxy Note 7 fires, recall and cancellation: Everything you need to know
• Do not buy a Galaxy Note 7
• Samsung Galaxy Note 7 review
• The latest Galaxy Note 7 news
• Join the Note 7 discussion in the forums!