Samsung already slashed its estimate for third-quarter operating profit by 2.6 trillion won ($2.3 billion), saying the revision in third-quarter earnings guidance reflected "the direct cost from the discontinuation of the Galaxy Note 7 sales". Lee is projecting a mobile operating profit between 1.5 trillion to 2 trillion won.
Authorities in the USA and South Korea are still investigating why even the replacement Note 7 phones that Samsung equipped with a safer battery are catching fire.
Samsung's recall of the devices was made official today via the U.S. Consumer Product Safety Commission, citing "serious fire and burn hazards" to consumers.
The Note 7 launched at £749 in the United Kingdom and $799 in the USA, which is what most customers probably paid. The Note 7 devices were overheating and catching fire even after a recall that was supposed to fix the problem.
Overall, through two recalls, Samsung is recalling 1.9 million Galaxy Note 7 devices, according to the CPSC. In fact, we've seen plenty of Samsung superfans who love the Note 7 so much they're making a conscious choice to defy the recall. If you own a Note 7, your message will ask you to return the device. On Tuesday, investors sent Samsung stock down 8% for its biggest one-day drop in eight years.
More than 100 Galaxy Note7 smartphones have reportedly caught fire to date, including 23 overheating in the United States after the initial recall. The U.S. consumer agency had announced a voluntary recall of nearly 1 million Note 7s on September 15. Experts say Samsung may have rushed to conclude the Note 7′s problem was a battery issue and it may take a long time to find the real cause.
In other words, the company will give you a $100 credit on your bill as long as you get another Samsung phone. There may have still been hope for the phone, but the reputation was too tarnished for Samsung to continue.