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Note 7 banned on US flights, Samsung continues losing billions

The Department of Transportation (DOT) of the USA has officially issued an emergency order stating a ban on the Galaxy Note 7 from every US flights. This will be effective from today itself. On the other hand, Samsung announced that it would lose an additional $3.1 billion USD in the next two financial quarters due to the Note 7 tragedy.

The ban on carrying the Galaxy Note 7 in aeroplanes across the USA, comes right after Samsung put an end to its newest flagship. DOT has entirely prohibited any type of air travel of the affected device, including in baggage or as cargo. The authority has clearly stated that no one will be allowed to board any aeroplane in the States if he or she carries a Note 7.

In the guideline, DOT has told that if any individual tries to escape the ban by sliding the smartphone inside checked luggage, he or she will be subjected to a criminal proceeding. However, if anyone carries the Note 7 with him inside an aeroplane, only being caught midway when the flight in the air, then he or she may not be criminally prosecuted. Instead, the crew members will ensure that the device is safely switched off and kept in constant observation throughout the flight.

DOT has marked the Galaxy Note 7 as a forbidden hazardous material under the Federal Hazardous Material Regulations Act. As a result, in the USA, Samsung will not be able to transport the returned units of the smartphone through the air. The government authorities have given a special permit to the company to carry the recalled devices through ground transports.

Meanwhile, Samsung has announced yet another loss of profit due to the Note 7 disaster. The company estimates that the sudden discontinuation of its newest flagship will gravely affect its earnings for the next two quarters. Its negative impact will snatch away about $3.1 billion USD of profit combining the fourth financial quarter of 2016 and the first fiscal quarter of 2017.

Samsung has declared that it will attempt to normalise the loss by aggressively selling the Galaxy S7 and the Galaxy S7 Edge. These two are currently the best smartphones from the company. The Korean technology giant also specified that it would revamp its quality assurance procedures to ensure that this kind of mishaps never repeats in the history.

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