Samsung’s recall of the Galaxy Note7 could prove a costly affair to the Korean giant. According to Bloomberg estimates, Samsung is most likely to spend around $1 billion to recall their latest flagship phone worldwide. While the monetary loss seems substantial, in retrospect, this is a good move by Samsung as it allows them take corrective measures and at the same time, establish their reputation as ‘caring for customers over profits’.
Speaking of corrective measures, The Korea Economic Daily reports that Samsung will stop using their affiliate, Samsung SDI-manufactured batteries, which were found to be the culprit for battery malfunction. Samsung SDI accounted for 70 percent of the batteries manufactured for the Galaxy Note7 while the rest was fulfilled by China’s ATL.
Last week, Samsung announced to offer a replacement to every Galaxy Note7 customer and delayed the sales of the device in countries that was supposed to go on sale, including India.
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