When asked about the cost of Samsung Galaxy Note 7 recall, Samsung’s smartphone business head, Koh Dong-jin, replied it was a “heartbreaking” amount.
The number of phones being recalled is 2.5 million. This recall, according to analysts, could cost Samsung as much as $1 billion (Dh3.675 billion).
The recall comes in the light of more than three dozen devices exploding due to battery issues and might not have been an easy decision for the company.
But the billion dollars in question is not even 5 per cent of the projected net income of Samsung for this year. Also, Chinese battery-maker Amperex Technology that is said to have provided 30 per cent of these batteries might just share a portion of the incurred loss.