Samsung: total Note 7 recall costs now $5 billion, cue 'significant' quality assurance changes


Apart from the direct cost of the Note 7 recall, which Samsung estimated on Wednesday to result in about a $2.3 billion slash in profit for the precious quarter, the company now issued another earnings guidance update, looking forward to the recall loss estimates for Q4 2016 and Q1 2017.

This current quarter it expects the discontinued sales to impact the bottom line in the mid-2 billion, with another billion added for the January-March period. This amounts to about a $5 billion writeoff in total for the double recall, or roughly two grand per Note 7 phablet. Granted, that's probably a top line estimate so that Samsung can insure itself against any unforeseen expenses, but it's still a pretty costly endeavor, wiping out two thirds of this quarter's operating profit in one fell swoop.

Therefore, Samsung is apparently determined not to let this happen again, and announced that it "will focus on enhancing product safety for consumers by making significant changes in its quality assurance processes." Given the rumors that it is planning to announce a foldable phone by March, those QA changes better happen fast and furious, as we can only imagine how hard would this one be to manufacture compared even to the "symmetrical" Note 7 design. Meanwhile, Samsung said that it will try to fill the void left by Note 7 by ramping up production of the S7 and S7 edge models.

source: Samsung

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Galaxy Note 7
  • Display 5.7" 1440 x 2560 pixels
  • Camera 12 MP / 5 MP front
  • Processor Qualcomm Snapdragon 820, Quad-core, 2150 MHz
  • Storage 64 GB + microSDXC
  • Battery 3500 mAh

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45 Comments

1. Mxyzptlk unregistered

About time.

2. pongkie

Posts: 663; Member since: Aug 20, 2011

I don't care what they lost they deserve that, They wont even accept all accessories for refund only the covers. My money wont go to Samsung in the future, I lost money too on their accessories now my note 7 is gone

8. sissy246

Posts: 7070; Member since: Mar 04, 2015

If your accessories were not refunded it is not Samsungs falt. Blame the store you bought it at.

11. pongkie

Posts: 663; Member since: Aug 20, 2011

it's Samsung fault for having a crappy ass phone, I gave them a second chance for a replacement. the store said Samsung won't refund them accessories not specially made for the note 7, so I'm stuck with a car charger, battery pack, wireless charger all official Samsung accessories

14. anglosaxonengland

Posts: 64; Member since: Sep 11, 2013

The car charger lucky for you works with anything.

16. pongkie

Posts: 663; Member since: Aug 20, 2011

actually a had a car charger, I only bought a official one because the store told me it's "safer" but I guess they lied

17. sissy246

Posts: 7070; Member since: Mar 04, 2015

Samsung said from the get go they would only refund note 7 accessories. All that can be used with other Samsung phones. I would still talk to a store manager about it. Maybe you did I don't know.

19. NCAAtourney

Posts: 40; Member since: Mar 15, 2016

lol would you stop defending Samsung already? What happened to pongkie should never happen.

24. 14545

Posts: 1835; Member since: Nov 22, 2011

I'm sorry, I highly doubt he is telling the truth. He bought an official "car charger"? What he didn't already have one for a usb-c that works with every other device out there? Then, he bought a QI charger, that yet again, works with every other device out there? Then, he bought a battery pack for it too? At some point one has to call BS. This is just a troll, and it's obvious to anyone with half brain. Then again, it appears as if we shouldn't count you in that column.

26. 14545

Posts: 1835; Member since: Nov 22, 2011

Oh, additionally, Samsung is giving a 100 dollar credit, so I'm sure that it more than covers his accessories that can be used elsewhere.

42. pongkie

Posts: 663; Member since: Aug 20, 2011

the $100 credit is only for those who opted the S7, I opted the full refund. if I chose the S7 won't I even try to return the accessories

36. pongkie

Posts: 663; Member since: Aug 20, 2011

I bought a car charger R27H7N02BH1HM2 that's the serial and a battery pack Faster Charging Battery Pack RF7H8023WQZTYS which come with a USB type C adaptor and also if you are forgetting there is also a USB type adaptor comes with the note 7

29. sissy246

Posts: 7070; Member since: Mar 04, 2015

On this I will not stop. Yes Samsung F**KED on the note 7 I know that and understand that. They are refunding anything that can only be used for the note 7 and that is all they should do. And I don't believe the store will not at least let you exchange them for something else in less you can not provide proof you bought them there.

39. pongkie

Posts: 663; Member since: Aug 20, 2011

Here in our country they have authorized Samsung resellers they are called SES Samsung stores I want to show proof but all I can post are serial numbers of the items I bought

28. PrYmCHGOan

Posts: 335; Member since: Sep 28, 2016

Its your fault to be complaining about a phone, you didn't even buy.

38. pongkie

Posts: 663; Member since: Aug 20, 2011

NOTE 7 IMEI Old - 351708083334956/ Replacement - 353124082937989 that's from the phones

44. Babert

Posts: 165; Member since: May 08, 2013

it is Samsung's fault. they had to reimburse the cost of accessories! as a Samsung loyalist I don't like it when I have to lose my phone and accessories because of their fault!

27. PrYmCHGOan

Posts: 335; Member since: Sep 28, 2016

Samsung has nothign to do with what you purchased from a 3rd party. All carriers said they would refund any accessories you purchased from them for your Note 7. If you didn't purchase your accessories from a carriers, than so sad too bad. If the $100 they are giving away, isn't enough for you to cover what you bought, TOO BAD! You're complain about nothing.

37. pongkie

Posts: 663; Member since: Aug 20, 2011

its not 3 party its all bought form a official Samsung store

40. pongkie

Posts: 663; Member since: Aug 20, 2011

Also the $100 dollars they will only deduct it if you chose to replace it with a S7, If its a full refund it's a different story which they won't give it right away they would make you wait 4 to 5 weeks

30. iushnt

Posts: 3086; Member since: Feb 06, 2013

Its a lie..

41. pongkie

Posts: 663; Member since: Aug 20, 2011

that's your opinion

3. 14545

Posts: 1835; Member since: Nov 22, 2011

It's about time to stop following phone arena. I mean seriously, between the million iP7 articles and then followed by the million Note 7 "explosion" articles where you clearly don't understand the difference between a fire and an explosion, I don't know if I feel like having to scroll by 20 articles a day just restating the same thing.

5. pongkie

Posts: 663; Member since: Aug 20, 2011

I take it as a public service, without those reports Samsung would've kept all those fires out of sight

6. kiko007

Posts: 7493; Member since: Feb 17, 2016

Exactly. On multiple occasions, it's been reported that Samsung knew of replacement Notes exploding, yet said nothing. If you let any company do so, they'll throw everyone under the bus for mula.

12. 14545

Posts: 1835; Member since: Nov 22, 2011

It's one thing to post a couple of articles about it. But when it's every other story for weeks at a time, it gets old. That's no longer "public service" and more like annoyance. Between this, and the extremely intrusive ads as of late, I feel very little need to come back, and I'm tired of seeing this fill up my feed.

15. pongkie

Posts: 663; Member since: Aug 20, 2011

I don't know about you but for me having something near me that can harm me or even kill for months is not really a good feeling. So I keep going to sites like this on what's going on because Samsung's website only showed warnings and their plans in the end of this mess

23. 14545

Posts: 1835; Member since: Nov 22, 2011

Dude, stop being dumb. You look like a troll. EVERY MEDIA OUTLET has beat this to death. So if you couldn't get the message from one of the 18 reports a day out of any stupid media outlet, then death is/was pretty much warranted. At this point, it's just for click-bait by Phonearena. I'm tired of it. Argue with someone else about how these redundant, stupid articles are necessary. I'm out.

18. sissy246

Posts: 7070; Member since: Mar 04, 2015

Wrong It would have still been brought out . It's on the news even day on some channel. 2 or 3 articles a day is plenty, but we don't need 6 to 15 a day.

7. Foxgabanna

Posts: 587; Member since: Sep 11, 2016

I mean what would you rather we talk about? This is the biggest story in electronics recently, and you want to sit here and go over how 1% of the NY police force has switched to Windows Mobile? GTFO

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