Samsung has revealed that the true cost of scrapping the Galaxy Note 7 could be as much as £4.4 billion.
The South Korean firm confirmed that discontinuing the faulty smartphone would effectively cost the company £2.5 billion during this and the next quarter.
Samsung had already cut its third-quarter profit forecast by £1.9 billion earlier this week, an amount that could wipe out its entire mobile business profit.
On Tuesday, Samsung scrapped its flagship Galaxy Note 7 smartphone, a day after halting sales because of concerns over consumer safety, with faulty units overheating and exploding due to a battery defect.
But Samsung has enough cash to absorb the shock from the phone recall. The company said it expects to generate 5.2 trillion won (£3.7 billion) in operating profit during the third quarter after the recall cost.
Samsung added that it will make significant changes in its quality assurance processes to enhance product safety for consumers.
The company said it will expand sales of two other smartphones released in spring - the Galaxy S7 and Galaxy S7 Edge - quashing rumours that it may try to release updated versions of those devices.
If you own a Galaxy Note 7 and have not yet been able to return it here’s some helpful on advice on what to do next:
1. Back up your data then turn it off
This seemingly goes without saying, but it’s always good to be sure. The Note 7 is a defective piece of technology that has the potential to catch fire. Backing up your data then turning it off is a must.
If you’re stuck on how to back up, there’s a great explainer by the Android experts Android Central which you can read here.
2. Call this number and arrange a recall
Samsung should be reaching out to you individually, if they haven’t though there’s a special phone number you can call Monday-Saturday 9am to 6pm, Sunday 10am-6pm.
Call: 0330 7261000
Samsung then should be able to send you the fairly extreme packaging needed to send the Note 7 back to them.
3. Exchange your Note 7 or get a full refund
Samsung UK are offering Note 7 users two options when it comes to reimbursement. They will either offer you a Galaxy S7 or S7 edge with a refund of the price difference or you can obtain a full refund for the phone.
Considering you can currently only buy the S7 or S7 edge from Samsung with 32GB of storage you might want to consider either using the extra money on a microSD card OR find an alternative using our guide to the best smartphones available right now:
