When it rains it pours! Affected severely by the recent calamity with Galaxy Note 7, Samsung has revised down its third quarter earnings, due to recalls, stop order and compensation.

Analysts estimate the company has lost 22bn in market value since the incident and looking at the readjusted figures announced the cost for the recall would have cost Samsung an estimated $2bn. Year on year, in 2015 third quarter results showed 51 trillion Korean won in consolidated sales when the Note 6 was launched, this year the forecast has dropped by 4 trillion won or $3.5bn.

Despite the lower estimation, the company is not in any serious financial difficulty, Samsung is cash rich and could probably buy its way out of this predicament. But does this call for the end of Note series, the Note 7 might not see daylight but Galaxy Note 8 can be the phone that saves the legacy model that changed Samsung from a follower to a leader. Carving a market niche when the larger display device first came out, prompting Steve Jobs to openly state that Apple will never produce a large screen smartphone. But the phone was a runaway hit, winning awards and accolades, forcing Tim Cook to launch the bigger display iPhones.

Samsung is a giant conglomerate that has multiple source of revenue including the other flagship that can carry the company through this storm, while the loses might be a drop in the ocean in terms of financial impact, the gain for competitors like Apple would not be significant. iPhone 7 and 7 Plus is overpriced by market estimates and very likely to benefit from the recall.