As you guys have heard by now, Samsung has officially put an end to the production/sales of the Galaxy Note 7. This follows the recall of the phone after reports of its battery exploding, but it seems that even after the recall, replacement units were said to be experiencing issues as well.
Not only has this incident tarnished Samsung’s reputation, but it also seems like it will end up costing Samsung a pretty penny. According to a report from Reuters, it has been estimated that this entire incident could very well set Samsung back a whopping $17 billion. The first recall is said to have cost the company $1 billion, but with the halting of the production and essentially the discontinuation of the phone, it looks like Samsung is out $17 billion with nothing to show for it.
According to analysts, they predict that Samsung will probably be losing out on the sale of 19 million units which is what they have estimated Samsung could have sold during the phone’s product cycle, which Reuters has calculated to be worth about $17 billion. Of course for a company of Samsung’s size and resources, this hardly marks the end of the company nor their phone efforts.
However like we said, their reputation has taken quite a hit and also the trust that customers have in the company will be hard to regain, but we guess we’ll have to wait and see what Samsung has planned for the future.