joining me now is peter else from live -- peter ellstrom. cations were this would be terrible, but more recently, not as bad as some analysts had expected. peter: the projections for note 7 sales in particular have been cut dramatically. they are down about 38% according to what we have seen. they are likely to ship only 8 million note 7's this year. currently because they have not been able to sell them during the crisis. they are pretty far along in terms of the recall. of the phones have been replaced and are beginning to ship new phones in the key markets, including korea and the united states. earnings give a broad indication of operating profit and revenue. they may give insight into what this recall will cost. hopefully they will give us some transparency. emily: what about the long-term follow-up? samsung has said that most people are replacing their phones, but over the long term, do we see customer switching brands as a result? peter: that is the key question. not incidentally, google introduced a line of high-end phones today. you