Samsung estimates $3.1 billion loss over the next two quarters because of Galaxy Note 7
Samsung’s Galaxy Note 7 was on track to be the hottest Android phone this holiday season, before several reported fires derailed the phone. Two official recalls later and production of the phone has officially stopped, leading us to ask if it’s the worst Android phone of all time. Samsung might think so for a while, as the company has revealed a revised forecast for its profits over the next two quarters thanks to the fiasco.
Samsung released a statement that says the company expects to lose about $3.1 billion thanks to the Galaxy Note 7 cancellation over the next two quarters. Analysts expect the fiasco to cost Samsung a whopping $17 billion in total revenue, as Samsung was expecting to sell at least 19 million devices this year.
To try and help make up for some of the loss, the company is ramping up production on its Galaxy S7 and S7 Edge line of phones, but Samsung’s general consumer reputation is definitely tarnished from this incident.