When the Galaxy Note 7 was recalled, it was estimated that the cost of replacing more than two million units is going to be over $1 billion. That's no longer the case. Samsung is without a flagship smartphone to sell in the upcoming holiday season and the lost sales will add up quickly. Analysts at Credit Suisse estimate that lost sales of up to 19 million units will cost the company around $17 billion. Analysts had previously estimated that missed sales and the cost of the recall will amount to $5 billion if Samsung started selling the Galaxy Note 7 in the fourth quarter of this year. Now that the flagship is dead the financial impact will be greater.
Then again, it's not the end of the world for Samsung. The company has a market value of more than $235 billion and is sitting on record-high cash reserves of over $69 billion. It can certainly absorb the impact, and we can be sure that Samsung will have no intention of ever going through something like this again.
