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The withdrawal of Note 7 after the recent incidents with the battery, will cost $ 1 billion to Samsung.

The withdrawal of Note 7 after the recent incidents with the battery

Two weeks have passed since the disposal of the Galaxy Note 7 on store shelves and Samsung after recent news that the device battery is faulty and there is a possibility of explosion, withdraw 2.5 million devices. According to statistical data and expert analyzes to Bloomberg the cost of withdrawal amounts to $ 1 billion.

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The damage is estimated to be less than 5% of total net Samsung’s revenue for the year 2016 amounting to $ 20.6 billion. A portion of the withdrawal costs seem to be absorbed by the SDI department of the company, which supplied 70% of batteries to produce Note 7. The withdrawal seems to come in a bad time for the company as well as the time frame that was until the disposal of the rising iPhone 7 lost.

Image result for note 7 recall

The course successful sales of the device and due to the very good marketing and the positive reviews of experts and the buying public, but aided by the absence of competing iPhone model on the market. The availability of Note 7 has stopped in 10 key countries, the reliability and the reputation of the device has received a huge blow. The positive, analysts say, is that Samsung has moved quickly to address the issue and its impact is likely to be short-term.

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