According to WSJ report, Samsung Electronics Co. said Tuesday that it would permanently discontinue production and sales of its embattled Galaxy Note 7 smartphone, pulling the plug on a premium product whose botched recall has brought headaches to consumers and inflicted damage on the Samsung brand.
It wasn’t long ago that Samsung was calling the projected $1 billion dollar cost of the first Galaxy Note 7 recall a “heartbreaking amount”.
“Taking our customer’s safety as our highest priority, we have decided to halt sales and production of the Galaxy Note 7,” the company said.
Analysts cited by Reuters came up with the $17 billion dollar figure, based on lost sales of the 19 million Galaxy Note 7 units Samsung had originally expected to sell during the device’s lifetime. The figure is a drastic increase from the $5 billion dollars analysts predicted the original recall would cost the company. Samsung is also facing up to $1.6 trillion Won in disposal costs if 4 million-odd Note 7’s need to be safely disposed of.
Samsung shares tumbled 8%, its biggest one-day decline in eight years, far outpacing the broader South Korean market’s 1.2% pullback, after Samsung told Galaxy Note 7 users world-wide to immediately switch off their devices Tuesday.
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