What happens to Samsung after the Note 7 disaster?
After dozens of incidents in which batteries overheated and began smoking or catching fire, the Samsung Galaxy Note 7 is dead.But Samsung's nightmare is just beginning."Samsung isn't the only [company] out there offering Android phones," Recode's Senior Mobile Editor Ina Fried said on the latest episode of Too Embarrassed to Ask."They have a less defensible position, which makes it all the more crucial that they work on repairing that brand ASAP."Speaking with Recode's Kara Swisher and The Verge's Lauren Goode, Fried said the Note 7 was not Samsung's most popular phone, but the high-end device was one of its most profitable.
Eric Johnson
Samsung Sacrificed the Note 7 to Save the Company
Professor John Jacobs is the Executive Director of the Georgetown Center for Financial Markets and Policy at Georgetown University's McDonough School of Business.+ READ ARTICLESamsung has killed the Galaxy Note 7.It is writing off $2.3 billion in the third quarter due to the cancellation of the highly touted phone.From my perspective, it was a smart, wise and cost-effective decision.
John Jacobs
Samsung India stares at 14% revenue hit for 2016 post Note 7 debacle: CMR
NEW DELHI: Samsung could be looking at a 14% revenue loss in the smartphone segment for 2016, on the back of a likely 4-million shipment shortage, emanating from the Galaxy Note 7 debacle that ?is likely to spill over to other segments, according to Cybermedia Research.Revenue loss of Rs 6,457 crore is expected from January-December, following Samsung's move to recall the Galaxy Note 7 and eventually stop production, which would reduce the expected revenue growth for this year to 25% on-year, compared to previously estimated rate of 46%, the Gurgaon-based research firm said in a note Friday, which was accessed by ET."Though Note7 is a high-end premium Smartphone, the impact would be on Samsung spanning all across the segments.The issue is faced with the flagship model of the year that too around festive season, as a result, customers' confidence is shaken," Faisal Kawoosa, Principal Analyst for Telecoms at CMR said."A perception, right or wrong, gets built within the market that if the issue is with the high-end premium model, there could be issues in the other models too," he added.Samsung's market share in India will also shrink by 4.2 percent points to around 25.5% instead of estimated 29.7%, although the Korean smartphone maker will continue to maintain leadership in this segment in the country.The world's largest phone maker "stopped sales and exchanges of the Galaxy Note 7" and "consequently decided to stop production" of the device, citing consumer safety concerns, pulling the plug on the device completely due to incidents of fire erupting in models handed out to replace recalled devices.
Gulveen Aulakh
Samsung Note 7 recall to cost at least $5.3 billion
Samsung Electronics said Friday that discontinuing the Galaxy Note 7 smartphone, which is prone to overheat and catch fire, will cost it about $3 billion in the current and coming quarters, raising total costs from the recalls to at least $5.3 billion.Continue Reading BelowThe Note 7 discontinuation will cost in the mid-2 trillion won range during the October-December period and another 1 trillion won ($884 million) during the January-March quarter, the company said in a statement.Samsung already slashed its third-quarter profit forecast by $2.6 billion earlier this week, an amount that could wipe out its entire mobile business profit.That did not include the cost of Samsung's first recall, which analysts estimated at 1 trillion won to 2 trillion won.
Post a Comment