With South Africa’s tax season underway and SARS’ auto-assessments being sent out, the tax revenue service has warned of scams targeting eFiling users. SARS…
Friday saw Samsung announce that it will indeed be issuing a global recall of all Galaxy Note 7 phablets. So how much of a dent will it be making in the Korean firm’s pocket?
According to estimates by Bloomberg, Samsung is expected to pay roughly US$1-billion for the recall of all Galaxy Note 7 devices on the market right now. Samsung hasn’t confirmed the estimate, only saying that the costs would be “heartbreaking”.
However, financial losses should be the least of Samsung’s concerns, an expert told the publication.
“The potential damage to reputation is far greater than short-term financial losses,” said Chang Sea Jin, a professor at the National University of Singapore.
Samsung is expected to shell out US$1-billion for the Galaxy Note 7 recall
Another expert said that Samsung’s release date advantage over the iPhone has all but “evaporated” as a result of the recall.
Friday’s move comes after just over 30 devices caught fire due to faulty batteries.
“To date (as of September 1) there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market. However, because our customers’ safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note 7,” Samsung wrote in a press statement confirming the recall.
“For customers who already have Galaxy Note 7 devices, we will voluntarily replace their current device with a new one over the coming weeks.”