Now that Samsung’s flagship Note7 phone is fully recalled and discontinued due to exploding batteries, two questions remain: Why, exactly, did this happen, and how will this impact Samsung financially?
On Friday, Samsung released an estimate on the latter, saying the it expects a “mid-3 trillion won” impact in operating profit for the fourth quarter of 2016 and the first quarter of 2017.
While “mid-3 trillion” is not a very precise figure, 3.5 trillion won translates to $3.09 billion, so that’s the number we’ll have to work with for the time being.
