Samsung Note 7 Fiasco Will Cost Samsung US $ 5.3 Billion And 40 % of It’s Customers
The state of affairs are poor for Samsung Mobile, as the company deals with its biggest disaster yet. The Note 7 has truly turned out to be a problem for the brand, an expensive problem at that.
The reported recall and disposal of the Note 7, will cost the parent company a whopping $5.3 Billion. However Samsung has assured its investors that it plans to recover the losses in less than three quarters after the Note 7 process is complete.
Samsung claims it will expand sales of the Galaxy S7 and Galaxy S7 Edge and will not be releasing updated versions of those devices. Samsung has recalled 1.9 million Note 7 units in the US , 200,000 phones in China and about half a million phones in South Korea. This after a total 96 reports of the batteries of the Samsung Note 7 exploding emerged.
Surprisingly most reports of the Explosive Note 7 handsets has come from the US, also the largest market where the Note 7 was on sale. However, Samsung claims that the financial loss reports are incorrect and issued the following statement. :
Samsung India is appalled by the incorrect reporting of company’s financials based on reports by various research agencies.
The reports covered in some news articles quote different revenue loss estimates for Samsung India. These research reports are not based on empirical facts. Such projections by any research agency or analyst, therefore, is incorrect.
Samsung has not sold Galaxy Note7 in India. However, we can confirm that contrary to these reports, we are headed for record sales of mobile phones this year. The festive season has started for Samsung on a high and we have strong support and trust of our customers.
However, according to the Branding Brand survey, over 40% of current Samsung consumers say they won’t buy another phone from the brand. Out of which:
- 8% will buy a Google Pixel
- 30% will switch to iPhone
- 62% will go with another Android phone
What would you do?