Samsung: ‘negative impact’ of Galaxy Note 7 expected to cost $3 billion

spiralbinder-2016-2111-044Samsung has officially weighed in on its expectations for the financial loss caused by the Galaxy Note 7. In a press release, the company said it expects a ‘mid-3 trillion won’ (roughly $3 billion) deficit from the Note 7 in Q4 2016 through to Q1 2017.

Samsung also said that it ‘plans to normalize its mobile business by expanding sales of flagship models such as the Galaxy S7 and Galaxy S7 Edge,’ adding that it would ‘focus on enhancing product safety for consumers by making significant changes in its quality assurance processes.’

The Galaxy Note 7 was recently discontinued after a short time on sale and problems with the device overheating. The damage this would cause to the company financially had been speculated to be anywhere between one and 17 billion dollars.

Samsung will, of course, have a clearer idea of the numbers than industry analysts, but these are only predictions – the Korean manufacturer is still in the process of retrieving and refunding all units, making it difficult to estimate the total loss.

Yesterday, Samsung Mobile boss DJ Koh pledged to regain consumer trust following the Note 7 debacle. The company has also offered incentives to those returning a Galaxy Note 7 to pick up another Samsung device in an effort to limit the number of complete refunds.

Do you think Samsung will bounce back quickly or will consumer faith take a while to rebuild?