Samsung warns of £4bn hit to profits from Galaxy Note 7 fallout

Exploding phones take heavy toll on South Korean electronics firm, with safety crisis expected to dent customer loyalty

Samsung has issued its second profit warning this week after the withdrawal of its Galaxy Note 7 phone, increasing the estimated cost of the recall to its bottom line from 1.9bn to at least 4bn.

The South Korean electronics company said the crisis caused by the exploding Note 7 smartphones would reduce profits by at least 3tn won (2.2bn) in the six months to the end of March. It hopes it can boost sales of its other flagship handsets to cushion the impact.