With at least 35 cases of Samsung's new Galaxy Note7 catching fire while charging,sylvia marcos indigenous eroticism Samsung has halted further shipments of its devices.
The South Korean company will replace the phones that have already been sold, were at retailers and were in transit, Samsung said Friday. Future shipments are delayed.
SEE ALSO: Samsung makes critical decision on Galaxy Note 7 due to reports of explosionsHow much will the ordeal cost the conglomerate?
It's difficult to peg given the global scale, and the greater cost may come from damage to its reputation. Indeed, while other companies, like Apple, have issued their own recalls, Samsung has not faced such burdens, especially one that is so life-threatening.
Samsung declined to comment on the price tag for replacing the phones but admitted that it is not something to brush off. About 2.5 million had already been sold. Counterpoint Research estimates about 3 million had been shipped.
"It is a big amount that is heartbreaking," Koh Dong-jin, president of Samsung's mobile communications business, said at a news conference, according to CNNMoney.
Samsung lost about $7 billion of its market valuation after the company announced the delay in shipments on Thursday.
Such an ordeal is huge for Samsung given that its mobile division accounts for more than half of its profits. From January to June, Samsung's operating profit was $14.4 billion, where mobile accounted for 54 percent.
The recall and delay could cost up to $1.34 billion from its 2016 operating profits, Credit Suisse estimates, according to Reuters. Credit Suisse pegged Samsung's total operating profits for the year at $27.96 billion. In that scenario, the event would shave upwards of 5 percent off the total profit.
But that number is in its "absolute worst case" scenario. In replacing the phones, Samsung will gain back parts of the phone that could be recycled into new devices. While the exact cause of the explosion has not been determined, it may just be faulty batteries.
Time may be on Samsung's side. The incident happened only two weeks after the release.
"Since this has happened quite early in the product launch cycle instead of post-holiday season, it won’t cause a huge dent for Samsung financially," Jeff Fieldhack, research director at Counterpoint Research, wrote to Mashablein an email.
A full replacement of all shipped and in-store devices is immediately costly, but it could help to ease consumer's panicked minds. Replacing models "helps enhance consumer confidence and help reduce potential falls in future sales," HI Securities analyst James Song told Reuters.
Shares rose by more than 0.6 percent in trading Friday.
Topics Samsung
Will Oracle take over TikTok? Trump says he'll make a decision in 30 days
No one has ever been as happy as this pug getting belly scratches
Tailgating bro makes 'send beer money' sign, fellow sports fans do the rest
Wounded veteran helps Team USA to paratriathlon sweep on 9/11
Cibao FC vs. Guadalajara 2025 livestream: Watch Concacaf Champions Cup for free
Denver Broncos player loses sponsorship deal after anthem protest
Countries call for end to domestic ivory trade as elephants disappear
Baby humpback whales star in new PBS series 'Forces of Nature'
NYT Connections Sports Edition hints and answers for January 16: Tips to solve Connections #115
Donald Trump now allegedly believes President Obama was born in America
Best pizza oven deal: Save $150 on Chefman Indoor Pizza Oven
'The Last Guardian' delayed again, but not for too long
Paralympic athlete shares epic video from centre court straight after win
Watch: 'Bowie' the koala with different coloured eyes gets released
Apple, Tesla, Spotify: The tech announcements that never happened in 2024
Shaq hilariously fails to recreate Teyana Taylor's dance moves from 'Fade'
Tailgating bro makes 'send beer money' sign, fellow sports fans do the rest
'Sully' opens its Oscar campaign with a big box office debut
Three Apps to Combine All Your Messaging Clients Into One
Maker Studios, AOL and other digital players up for Creative Arts Emmys tonight
National Public Data breach: Do this to find out if your Social Security number has been leaked'The Fall Guy' review: Ryan Gosling and Emily Blunt make movie magicBest smart home deal: The Amazon Smart Thermostat is just $63.99Best sex toy deal: Save up to 70% on select toys at LovehoneyNew York Liberty vs. Los Angeles Sparks 2024 livestream: Watch live WNBAMinnesota Lynx vs. Phoenix Mercury 2024 livestream: Watch live WNBATesla considers adding a new ‘stuck detection' feature to Cybertruck. Here’s why.Here are the 5 songs of the summer, according to SpotifyHow much for Oasis tickets? Fans joke about splurging on reunion showsWayfair Labor Day Sale 2024Garmin Fenix 8 vs. Apple Watch Ultra: The Fenix wins big on battery lifeBerrettini vs. Fritz 2024 livestream: Watch US Open for freeMinnesota Lynx vs. Dallas Wings 2024 livestream: Watch live WNBANYT mini crossword answers for August 30Raducanu vs. Kenin 2024 livestream: Watch US Open for freeLabor Day robot vacuum deals [2024]My private data’s probably out there, but I’m not worried about it'Terminator Zero' creators find fresh life in sciGoogle Gemini now allows AISwiatek vs. Rakhimova 2024 livestream: Watch US Open for free Macy's Thanksgiving Day Parade will be livestreamed in 360 degrees Chrissy Teigen once again shuts down Twitter trolls Start a new (old) Thanksgiving Day tradition: 'Alice's Restaurant' on the FM radio Twitter's ongoing strategy? Video, video, video. Model slams brands using fur in fashion after walking off photoshoot 30 nice bath gifts to help your loved ones soak away 2016 19 dumb headlines we wrote inspired by Alicia Silverstone getting nude for PETA 'Yes we cran': 9 dad jokes from Obama's final turkey pardoning Fan mashes up 'E.T.' and 'Star Wars' to create ETPO This is how you celebrate Thanksgiving in space Everyone is searching for Narendra Modi app in India 'White Nonsense Roundup' is here to take on racist Facebook posts Elon Musk is fed up with fake news stories about himself The NHL has a new team and people are already mocking it Ellen DeGeneres tears up as Obama presents her with Medal of Freedom Classic movie lines vastly improved with uncouth Australian captions Everyday household objects more qualified for public office than Trump's cabinet There may be no aloe in that aloe vera you just bought This Thanksgiving, don't play nice—bring out your inner nasty woman instead How you'd love to troll your Trump
3.3203s , 10194.3828125 kb
Copyright © 2025 Powered by 【sylvia marcos indigenous eroticism】,Wisdom Convergence Information Network