Monday, September 5, 2016

Galaxy Note 7: a reminder to $ 1 billion? – ZDNet France

The case will be very expensive to Samsung, in every sense of the word. Recall that the world number one smartphone decided the heartsick to stop worldwide shipments of its latest Galaxy Note 7. PHABLET which was to be launched last week in France will remain the sine die conspicuously absent. As for devices already sold in Korea, the US and several other countries, they will be recalled and exchanged free of charge, said the giant in a statement.

Samsung said it had already sold 2 5 million Galaxy Note 7 in 10 countries. “I can not say exactly how much it will cost but it hurts my heart that this is an amount so high,” said Koh Dong-jin, head of the mobile division of Samsung.

Because if the case of batteries exploding is a disaster in terms of image, it will be financially. According to expert estimates cited by Bloomberg, the return program will cost $ 1 billion to Samsung, not to mention the impact on future sales of the PHABLET.

Samsung said that 35 cases of explosion have been identified and that the risk is 24 terminals in a million. It seems that this is the home provider that is involved (SDI, a subsidiary of Samsung), it would have provided 70% of the batteries Note 7.

This case comes at the worst time for the giant. Of course, we can welcome the precautionary principle in order to avoid further incidents but the image of the PHABLET risks being tarnished for a long time, while this would validate the comeback of the manufacturer. After several quarters of decline, Samsung went back ahead in the worldwide smartphone market, the manufacturer takes advantage of the success of the new range Galaxy S7 worldwide. Now the Note 7 is an evolution of S7.

According to IDC, sales of South Korean giant rose 5.5% year on year in Q2 to 77 million copies while the overall market grew by only 0.3%. This case could then break this dynamic plunge and Samsung in doubt. Investors are not mistaken, on Thursday, the action of the conglomerate lost more than 6% to the stock market …

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