Samsung says Note 7 recall to cost another $3 billion

Ahn Young-joon / AP

Customers wait for recall of their Samsung Electronics Galaxy Note 7 phones Sunday, Sept. 11, 2016, as powered-off Galaxy Note 7 smartphones are displayed at the company’s service center in Seoul, South Korea.

Associated Press

Thursday, Oct. 13, 2016 | 6:45 p.m.

SEOUL, South Korea — Samsung Electronics says the discontinuation of the Galaxy Note 7 would cost the company about $3 billion during the current and next quarters.

The company said Friday the Note 7 discontinuation will cost in the mid-2 trillion won range during the October-December period and another 1 trillion won ($884 million) during the January-March quarter.

Samsung has already slashed its third-quarter profit forecast by $2.3 billion earlier this week, an amount that could wipe out its entire mobile business profit.

It added that it will make significant changes in its quality assurance processes.

Due to mysterious fires and overheating, more than 2.5 million Galaxy Note 7 smartphones were recalled twice, most of them in the United States and South Korea, before it was discontinued just two months since its launch.