Anchor: Samsung Electronics has projected that losses from discontinuing the Galaxy Note 7 will be in the range of around mid-three-trillion won, or two-point-six billion U.S. dollars. The company said it plans to focus on enhancing product safety for consumers by making significant changes to its quality assurance process.
Kim In-kyung has more.
 
Report: Samsung Electronics expects that the termination of its Galaxy Note 7 production will incur a loss of more than three trillion won, or two-point-six billion U.S. dollars. 

In a statement Friday, the company estimated that the opportunity cost of discontinuing sales of the smartphones will be in the mid-two-trillion won range in the fourth quarter and around one trillion won in the first quarter of next year.
 
Samsung said it factored in all direct costs of the exit in the third quarter which ended in September, but it expects a negative impact on its profitability in the fourth and first quarters as well.
 
On Wednesday, Samsung slashed its estimated operating profit for the third quarter from seven-point-eight trillion won to five-point-two trillion won. The estimate fell far short of market expectations and was the lowest since putting in four-point-zero-six trillion won in the third quarter of 2014.
 
Samsung plans to minimize the fallout from the permanent end of the Note 7 by expanding sales of existing devices such as the Galaxy S7 and the S7 Edge.
 
It also said that going forward, it plans to focus on enhancing product safety by overhauling its quality control process.
 
Samsung hasn't come up with specific proposals, but a shakeup is expected beginning with the wireless equipment team as soon as it completes a probe into the cause of the Note 7's battery explosions.
Kim In-kyung, KBS World Radio News.