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Note 7 Fiasco Could Burn A $17 Billion Hole In Samsung Accounts


Ron Burgundy
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Signage is seen at the Samsung 837 store in the Meatpacking District of Manhattan, New York, U.S.By Se Young Lee SEOUL (Reuters) - Samsung Electronics' worst-ever recall could cost the company as much as $17 billion after it halted sales of its flagship Galaxy Note 7 for a second time, spelling an almost certain end for the ill-fated premium model. Samsung announced the recall of 2.5 million Note 7s in early September following numerous reports of the phones catching fire and on Tuesday the crisis deepened: The company told mobile carriers to stop sales or exchange of the $882 device and asked users to shut off their phones while it investigated new reports of fires in replacement Note 7s. As the world's top-selling smartphone company awaits results of probe by U.S. safety regulators, some investors and analysts predict Samsung may scrap the Note 7 and move on to successor models to limit the financial and reputational damage.




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