Chung Chang-Won at Nomura Holdings had estimated that the Note 7 termination would cost the company about €4.5 billion in operating profit through 2017.
The Note 7 discontinuation will cost in the mid-2 trillion won range during the October-December period and another 1 trillion won ($884 million) during the January-March quarter, the company said in a statement.
Yesterday, Samsung Electronics and the CPSC announced the second recall of its newest flagship smartphone, the Galaxy Note 7.
Unsurprisingly, the company said it will also "focus on enhancing product safety for consumers by making significant changes in its quality assurance processes".
In the meantime, Samsung said it "plans to normalise its mobile business by expanding sales of flagship models such as the Galaxy S7 and Galaxy S7 Edge".
The premium device that was meant to compete with Apple Inc's latest iPhones at the top end of the smartphone market had to be scrapped earlier this week, less than two months after its launch, due to safety fears. Samsung also recalled about 200,000 phones in China and about half a million phones in South Korea.
The troubled smartphone maker began offering financial incentives to US and South Korean customers for exchanging their Samsung Galaxy Note 7 phablets for a refund or another product, in an attempt to limit reputational damage in the wake of its exploding smartphones. The company received 13 reports of burns and 47 reports of property damages associated with the phones.
The move is fairly drastic, considering how Samsung has consistently tried to reassure stakeholders and the public that despite the Galaxy Note 7's problems, most of its customers were still choosing other Samsung devices.
Despite the handset being discontinued, the fallout of the Samsung Galaxy Note 7 exploding battery saga continues.
The company has been offering customers financial incentives - including $100 credit in the USA - to trade in their Note 7s for other Samsung phones. It was sold for between $850 and $890.
Source: Samsung warns of £4.3bn hit from Note 7 saga
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