A week ago, South Korea manufacturer announced that it was discontinuing the Galaxy Note 7. The company took this decision after second recall because replaced units of Galaxy Note 7 were also exploded and caught in fire.
The firm stated that disconnection of Galaxy Note 7 will cost around $5.3 billion in lost earnings over the three quarters beginning July. The disaster also affected several suppliers who developed everything from camera modules to casings with their losses estimated at up to $1.7 billion.
Samsung said in a statement that, “we will offer full reimbursement for left over inventories of Note 7 apparatus among our traders. The company also added that, “We feel sorry for causing anxiety amongst our contractors due to discontinuation of the Galaxy Note 7. We will absolute the return rapidly to reduce complexity faced by them.”
The report didn’t provide a specific figure, but said the payout would be calculated according to the different vendors’ inventory volumes. The central Bank of Korea said, it had taken the disaster into reflection when it trimmed South Korea’s 2017 expansion outlook to 2.8 percent last week from its previous 2.9 percent forecast.
Moreover, according to a report Samsung has started its own investigation committee in order to investigate the root cause of Galaxy Note 7 explosion.