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Samsung Formally Recalls Galaxy Note 7

U.S. safety regulators announced a formal recall of Samsung’s Galaxy Note 7 smartphone on Thursday after a spate of fires led to injuries and property damage.

The South Korean tech giant has said the problem involves about 2.5 million smartphones worldwide that included about 1 million in the United States.

Samsung had already initiated a voluntary recall but the company has been criticized for not offering clear information about the problem or how it would be resolved.

While the company was previously offering to replace the phones, it will now offer consumers the choice of a replacement or a full refund.

Some analysts said the recall could cost Samsung nearly US$5 billion in lost revenue this year.