Scrapping The Galaxy Note 7 Will Cost Samsung £4.4 BILLION

The fiasco will wipe out its entire mobile business profit for this quarter.

Samsung has revealed that the true cost of scrapping the Galaxy Note 7 could be as much as £4.4 billion.

The South Korean firm confirmed that discontinuing the faulty smartphone would effectively cost the company £2.5 billion during this and the next quarter.

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Samsung had already cut its third-quarter profit forecast by £1.9 billion earlier this week, an amount that could wipe out its entire mobile business profit.

On Tuesday, Samsung scrapped its flagship Galaxy Note 7 smartphone, a day after halting sales because of concerns over consumer safety, with faulty units overheating and exploding due to a battery defect.

But Samsung has enough cash to absorb the shock from the phone recall. The company said it expects to generate 5.2 trillion won (£3.7 billion) in operating profit during the third quarter after the recall cost.

Samsung added that it will make significant changes in its quality assurance processes to enhance product safety for consumers.

Ilya S. Savenok via Getty Images

The company said it will expand sales of two other smartphones released in spring - the Galaxy S7 and Galaxy S7 Edge - quashing rumours that it may try to release updated versions of those devices.

If you own a Galaxy Note 7 and have not yet been able to return it here’s some helpful on advice on what to do next:

1. Back up your data then turn it off

This seemingly goes without saying, but it’s always good to be sure. The Note 7 is a defective piece of technology that has the potential to catch fire. Backing up your data then turning it off is a must.

If you’re stuck on how to back up, there’s a great explainer by the Android experts Android Central which you can read here.

2. Call this number and arrange a recall

Samsung should be reaching out to you individually, if they haven’t though there’s a special phone number you can call Monday-Saturday 9am to 6pm, Sunday 10am-6pm.

Call: 0330 7261000

Samsung then should be able to send you the fairly extreme packaging needed to send the Note 7 back to them.

3. Exchange your Note 7 or get a full refund

Samsung UK are offering Note 7 users two options when it comes to reimbursement. They will either offer you a Galaxy S7 or S7 edge with a refund of the price difference or you can obtain a full refund for the phone.

Considering you can currently only buy the S7 or S7 edge from Samsung with 32GB of storage you might want to consider either using the extra money on a microSD card OR find an alternative using our guide to the best smartphones available right now:

Apple iPhone 7
Eduardo Munoz / Reuters
This is Apple’s best iPhone ever, and if we’re honest it’s one of their most innovative devices yet. It has an incredible camera, is water-resistant and boasts a stunning bright new display. Of course it can’t escape the rumours surrounding next year’s device but if you’re looking to buy a smartphone right now, and Apple are on your radar, this is the phone for you.
Google Pixel
The Huffington Post UK
This is Google’s iPhone. It’s that simple. As such there are achievements and compromises. If you’re after an incredibly well-built, powerful Android flagship, Google have given you a truly five-star smartphone. If you’re a photographer, the Pixel’s camera and cloud storage option make this a no brainer. It's not cheap though, with the XL costing over £800.
OnePlus 3T
The Huffington Post UK
The OnePlus 3T is simply a continuation of the ethos that makes OnePlus phones so good. It’s exceptionally well-built, powerful and offers you everything you could want in an affordable and meaningful package. No smartphone will give you more value for money.
Samsung Galaxy S7 edge
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With a new curved back and larger 5.5-inch display the Samsung Galaxy S7 edge is more about evolution than revolution. The S7 edge now sports a water-resistant body, embedded camera and a MicroSD card slot. The S7 edge is also Samsung's most powerful smartphone yet, so powerful in fact that Samsung have actually had to equip a tiny water-cooling system inside the phone. The good news though is that means you'll never have to worry about getting a warm hand.
Apple iPhone SE
The Huffington Post UK
Incredibly, Apple's familiar-looking iPhone SE manages to boast the same performance as its top-of-the-range iPhone 6s making it the most powerful 4-inch smartphone available. If you're keen to return to the days of one-handed texting then Apple's bite-sized iPhone is the smartphone for you.
The LG G5 sets itself apart from rivals like the S7, Xperia XA and the iPhone 6s by being something utterly unique. The G5 is the first commercial 'modular' phone, allowing you to swap out the bottom for new accessories. So far there's an audio one made in partnership with Bang & Olufsen and a camera-focused attachment which gives you extra camera controls.
Huawei P9
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The Huawei P9 is a smartphone designed for capturing life. Thanks to a partnership with photography legends Leica this dual-lens camera can take pictures that'll put your dedicated camera to shame. Of course it helps that the P9 is also a pretty great Android smartphone as well.
Google Nexus 5X
The Nexus 5X strikes the ultimate balance between power and affordability. Taking over the responsibility from the frankly excellent Nexus 5, Google's new smartphone boast an ultra-light body but still crams in a fingerprint sensor, the latest version of Android marshmallow and a Full-HD display.

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