Samsung could spend hundreds of millions of dollars replacing Galaxy Note 7 units that have been sent back due to a low but noteworthy fire risk. The company has confirmed the cost of this recall is "heartbreaking" and a calculation from Bloomberg suggests Samsung could take a $1 billion hit.

The unit replacements cover 2.5 million units that have already been sold and Samsung has also temporarily halted sales. A few dozen units have caught fire so far, according to reports, though Samsung must believe the flaw responsible for those incidents is widespread.

Samsung can certainly handle a $1 billion expense--it'll likely report over $20 billion in profit this year--but it's still not a good situation, especially with Apple's release of the iPhone 7 and 7 Plus this month.