Between its never ending patent lawsuits with Apple and the Galaxy Note 7 recall, Samsung’s bills are – wait for it – exploding.
The South Korean electronics giant says it’ll lose approximately $3.1 billion (about £2.53b, AU$4.08b) on the Note 7 recall over the next six months.
That’s more than triple the first recall estimate of $1 billion (about £820m, AU$1.32b). Unfortunately for Samsung, the Galaxy Note 7 replacements caught on fire, too, demanding the ultimate cancellation of the phone.
Today’s new figure is on top of the $2.3 billion (about £1.9b, AU$3b) hit it just took on third quarter earnings, according to Bloomberg.
In total, that’s a $5.4 billion loss due to the overheating phone. The Note 7 has also hurt the Samsung brand going forward and robbed Android owners of an otherwise enviable smartphone.
Samsung’s post-Note 7 plan
Samsung is down, but not out. The broader company is still profiting heavily from its semiconductor business. It makes RAM for the iPhone 7 and iPhone 7 Plus, for example.
The mobile division is also relying on the strength of the smaller S7 series to maintain its Galaxy line. It’ll pay you to swap your Note 7 for an iPhone, but pay you four times as much if you exchange it for a Samsung phone instead.
“Moving forward, Samsung Electronics plans to normalize its mobile business by expanding sales of flagship models such as the and ,” Samsung said in its press release.
“Additionally, the company will focus on enhancing product safety for consumers by making significant changes in its quality assurance processes.”
The S7 series will have to carry the company until February, when the company is expected to announce the at MWC 2017.