In addition to the obvious unit costs associated with Samsung's recall of 2.5 million Galaxy Note 7 smartphones, the firm is faced with delaying or cancelling planned marketing campaigns, and the negative knock-on effect on its semiconductor and display divisions. Samsung has already announced that it will halt production of new smartphones in South Korea for a few days starting next week, while also halting sales at some stores until further notice. Today several more reports have surfaced in Korea today discussing the depth of the problem that is now in play. As we noted last week, the recall - following problems with the batteries - could lead to losses of KRW1.5tn ($1.34bn) for Samsung.
In addition to the obvious unit costs associated with Samsung's recall of 2.5 million Galaxy Note 7 smartphones, the firm is faced with delaying or cancelling planned marketing campaigns, and the negative knock-on effect on its semiconductor and display divisions. Samsung has already announced that it will halt production of new smartphones in South Korea for a few days starting next week, while also halting sales at some stores until further notice. As we noted last week, the recall - following problems with the batteries - could lead to losses of KRW1.5tn ($1.34bn) for Samsung.