The second recall of the Samsung Galaxy Note7 and a halt in production could cost the company up to $17 billion (approximately Rs 1.13 lakh crore) in lost revenue, Reuters reported on Tuesday. Samsung Electronics has asked retailers to stop sales and exchanges of the device, in addition to asking users to power down their phones while it investigates reports of fires and battery meltdowns in the handsets sold after its first recall.

Analysts expected Samsung to sell 19 million units of the Note7 during the device’s product cycle, according to Reuters. The recall and and subsequent halt of sales based on the phone's retail price of $882 in South Korea could lead to the $17-billion loss, the report added. The phone is also facing an investigation by safety regulators in the United States, one of Samsung’s biggest markets for its mobiles.

The Korean company could also move on to producing newer flagship models to limit the financial and reputational damage caused to it, analysts and investors quoted by the report said. “By the time they fix the problem, they have to go through recertification and requalification. And by the time that happens, they’re going up against the [Galaxy] S8 launch,” said equity research managing director of Charter, Edward Snyder.

Meanwhile, Samsung on Wednesday said it was sending fire-resistant packaging to US customers to prevent possible explosions as they returned their Note7 devices to retailers, AP reported. The company further asked users who purchased their handsets from mobile carriers to visit their operator's websites for instructions on how to return their phones.

Samsung had launched the Galaxy Note7 in South Korea on August 19, but it was compelled to declare an international recall of 2.5 million units in September after several incidents of the phone exploding were reported in the press.