• by Gavin O'Malley , Staff Writer @mp_gavin, October 14, 2016

How much is Samsung’s Galaxy Note 7 debacle going to cost the Korean tech giant? Somewhere in the neighborhood of $3 billion in operating profit, Samsung estimates.

That doesn’t even include losses incurred during the third quarter. “The company already allocated the expected direct cost from the discontinuation of Galaxy Note7 sales in its third quarter earnings guidance revision,” the company said in a statement released on Friday.

Operating profit for the third quarter is now estimated to come in at about $4.6 billion -- down 33% -- while revenue expectations have been reduced to $41.8 billion.

In the fourth quarter, Samsung said it expects to lose somewhere between $2 billion to $3 billion.

The revelation comes less than a week after Samsung officially ceased production of the Galaxy Note 7.

At the time, Bloomberg called the move a “drastic step” -- but likely necessary given that the device has become a “major headache” for Samsung.

Last month, Samsung recalled the Note 7 after early models exploded. More recently, customers have been reporting that their replacement phones were smoking and catching fire.

How does Samsung plan to rebound from this disaster?

For starters, “Samsung Electronics plans to normalize its mobile business by expanding sales of flagship models such as the Galaxy S7 and Galaxy S7 edge,” it said on Friday. “Additionally, the company will focus on enhancing product safety for consumers by making significant changes in its quality assurance processes.”