Samsung was on a roll from the huge success of its Galaxy S7, which drove its shares last month to the highest it has ever been in two years and lifting its quarterly profit. The company was also strategic and tried leveraging on that momentum with the release of Samsung Galaxy Note 7. That started shipping about two weeks ago.
However, Samsung discovered a serious flaw in the Galaxy Note 7 late, but perhaps not too late. In a test, it was found out that three dozen of these devices had a flaw in their batteries; they catch fire and explode.
So being an ethical business, and trying to avoid lawsuits from injured (or worse killed) users coming to haunt them later on, Samsung has recalled all Galaxy Note 7 that have been shipped out. The global recall exercise that will see some 2.5 million devices shipped back to Samsung warehouses will cost the company about $1 billion.
This amount is “heartbreaking”, but failure to do so would be unimaginable; possibly the death of Sam from all the lawsuits from all corners of the world. Not to mention, …read more
Read more here:: Samsung Galaxy Note 7 Recall Will Cost Samsung $1 billion