Samsung adjusts impact Note 7 fiasco by another 2.8 billion euros

Samsung expects that the financial impact of stopping the sale of the Note 7 over the coming quarter and that from the beginning of 2017 will amount to 2.8 billion euros. This is in addition to the expected impact for this quarter.

Samsung calculates the negative impact in the fourth quarter to the end of 2016 at approximately 2 billion euros, which is estimated to be 800 million euros for the first quarter of 2017. The new calculations come on top of a downward revision of the profit forecast for the current third quarter by 2.1 billion euros.

In total, the negative impact of stopping the Note 7 over three quarters is 4.9 billion euros, according to estimates by Samsung itself. The Korean company says it wants to improve sales of the Galaxy S7 and Galaxy S7 Edge to mitigate the impact of the Note 7 discontinuation. In addition, Samsung promises to make significant changes to its quality control.

In the US, where the Note 7 was temporarily sold, Samsung has started to offer a discount of 100 dollars if Note 7 owners exchange their device for another Samsung device. If they opt for a smartphone from another brand, Samsung will refund them $25. Samsung will not repair or refurbish the recalled and already produced Note 7s: The company tells Motherboard to “discard” the devices, indicating that they will be destroyed and recycled.