Recent Galaxy Note 7 Recall Could Cost Samsung $1 Billion

Recent Galaxy Note 7 Recall Could Cost Samsung $1 Billion

Samsung is in the middle of a Galaxy Note 7 recall caused by battery flaw that could prove dangerous for users. According to Bloomberg, the Seoul-based company is looking at a $1 billion hit in replacing the smartphones.

The Galaxy Note 7 launched last month and had very strong sales out the gate with around 2.5 million phones moved. It’s that momentum that makes this $1 billion recall such a blow even as Samsung is expected to finish strongly in revenue. Upon receiving the reports, Samsung called for the recall to cut off potential injuries and damage to sales and carriers followed suit with refunds and offers to swap Galaxy Note 7 for a new phone.

The culprit here is the Galaxy Note 7’s battery. There have been a few reports that the phone is exploding and bursting into flames due to some flaw. Fortunately there haven’t been reports of users being severely injured.

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Starting with Kabir News in 2013, James has focused on tech, gaming, and entertainment. When not writing, he enjoys catching up on sci-fi and horror shows and comics. He can be followed on Twitter @MetalSwift.

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