Samsung revises down Q3 earnings after discontinuing Galaxy Note 7

Samsung Electronics’ worst-ever recall could cost the company as much as $17 billion after it halted sales of its flagship Galaxy Note 7 for a second time, spelling an nearly certain end for the ill-fated premium model.

At this point, however, it is not clear what the refund amount will be and what devices customers can get for their exchange.

Shortly officially putting the kibosh on the once mighty phablet, Samsung has begun to extend its refund plan to several more territories. And while earlier this week Samsung issued an earnings guidances that claimed it wouldn’t be financially harmed in any major way.

The South Korean firm now expects third quarter profits of 5.2tn won ($4.7bn; £3.8bn), which is a third lower than its original estimate of 7.8tn won.

Samsung says it’s working with the US Consumer Product Safety Commission to investigate Galaxy Note 7 fires and explosions.

The South Korean tech giant announced the global recall of the controversial handset in early September due to reports of some handsets catching fire while charging. At first, Samsung said a minor manufacturing error in the batteries for the Note 7 was causing the phones to overheat.

The company has been offering customers financial incentives – including $100 credit in the USA – to trade in their Note 7s for other Samsung phones. He added that T-Mobile is offering those who call customer care loaner phones until they are able to select a new device.

Park has long argued that Note 7’s problems appeared to be more than a simple battery defect. Mr Park said that customers who had paid for the phones have got refunds.

According to reports by Bloomberg and The New York Times, the original line of Note 7s had a battery manufactured by SDI, a Samsung subsidiary.

Jacobs, the Georgetown reputation expert, says Samsung will need to do more than that.

The company has been scrambling for answers in the wake of reports that smartphones were exploding, including supposedly safe models.