Samsung has recalled more than 2 million units of its Galaxy Note 7 smartphone from the market, following reports about the device's battery exploding. The highly anticipated model was launched in August this year and met a high level of success. However, its success was marred when over 30 cases of battery malfunction were reported.

Like Us on Facebook

Samsung has suspended the sale of Galaxy Note 7 and has issued an apology letter to its users. The cost of the recall is multi-fold for Samsung. The company has not only suffered a big blow to its reputation but is also likely to bear high financial costs as well. When asked about the financial impact, Koh Dong Jin, Samsung's head of smartphone business, replied that it has cost the company a "heartbreaking amount."

While the company has not given out exact financial figures of the cost of the glitch, Tech Times quoted a report by Credit Suisse Group AG, Daishin Securities Co., and Pelham Smithers Associates, which has pegged the cost at nearly $1 billion.

The report also suggests that the cost may be borne by Samsung's two battery suppliers. Up to 70 percent of the Galaxy Note 7 batteries were supplied by Samsung SDI while the remaining 30 percent came from Amperex Technology Limited.

Samsung's trouble has turned out to be a boon for Apple. According to Digi Times, the company has asked its manufacturing partners and component suppliers to ramp up their production by 10 percent. Due to two weeks waiting time for the Galaxy Note 7 replacement and the upcoming launch of the iPhone 7, it is highly likely that Apple anticipates that many Galaxy Note 7 buyers would turn to the iPhone 7 instead.