Samsung Estimated to Lose $1 Billion From Note7 Recalls

Shortly following the launch of Samsung’s highly-anticipated Galaxy Note7, which included innovative features like iris scanning and an improved camera app, customers began reporting incidents of the phone catching on fire while charging. With 35 known cases, Samsung issued a global recall due to the faulty batteries, which meant replacing nearly 2.5 million phones. In addition to halting current sales of the phone to sort out the issue, analysts have estimated that the recall will cost the South Korean company roughly $1 billion USD. With increased competition from other smartphone competitors, it will be tough for Samsung’s reputation to recover from this setback. However, given that Apple’s Keynote and iPhone 7 announcement is slated for this Wednesday, this pricey solution may be the best move it can make at the moment.