Samsung is bracing itself to lose out on three trillion Korean won (€2.4bn) in operating profit as a result of discontinuing its Galaxy Note 7 product, after reports emerged of units overheating and bursting into flames.
During its fourth quarter of 2016 ending 31 December, Samsung is expecting profits to buckle by two trillion won, with the remaining one trillion won expected to hit the first quarter of 2017 ending 31 March.
In a press release, the firm said it will "focus on enhancing product safety for customers by making significant changes in its quality assurance processes".
Samsung also revealed that in the future it will concentrate on developing its "flagship" models, the Galaxy S7 and Galaxy S7 edge.
The Korean vendor recalled some 2.5 million phones last month to address the problem.
It had also urged customers with an original Note 7 or a replacement unit to power down the device and stop using it.
Samsung's shares plummeted by more than eight per cent - amounting to $17bn - after initial reports of faulty devices emerged.
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