Samsung facing $5.3bn hit to profits due to Note 7 debacle

Electronics giant Samsung is likely to be hit by another setback in its failed Galaxy Note 7 device, with the company expecting to lose around $5.3bn from the withdrawal of the product.

The smartphone was recalled globally in September after several reports of explosions and fires caused by a defective battery, before being completely withdrawn this week after the company failed to shake off the issue by offering replacements.

Samsung said the recall has cost them around $2.3bn already, and the additional losses in profit over the next six months is expected to take that figure to $5.3bn.

The device produced by the South Korean firm was a direct opponent of the newly-released Apple iPhone 7, but the company now faces the long-term hurdle of maintaining brand loyalty following the debacle.

"The company will focus on enhancing product safety for consumers by making significant changes in its quality assurance processes," Samsung said in a statement.

It also said that it would be making attempts to "normalise" its smartphone business in the wake of the scandal by expanding its sales of other devices, such as the Galaxy S7 and S7 Edge.

Shares in the company have started to recover after a 10% lapse at the beginning of the week, gaining 1.4% on Thursday and 0.5% in early Friday trading.