“Expect them to come out fighting in the wake of the this stumbling block.”
The Samsung Galaxy Note 7 is possibly one of the biggest product recalls in recent history.
Only Volkswagen’s emission scandal is similar in the size of the negative publicity. The overheating issue meant both original and replacement handsets to be recalled.
Now that the danger to customers has been averted, Samsung revealed the damage is not just to their brand image.
The pockets of the investors and company owners have also been hit, who until this incident were turning a healthy and growing profit.
With the operating profit from July-September down to 5.2tn won (£3.7 Billion) from 7.2tn won Billion (£5.1 Billion) the previous year, a fall of around 30 percent.
The outlook does not look bright for the next two quarters with loss-profits being put at £2.4 billion-plus. Their mobile division taking the brunt of this with profits down 98 percent with the complete scrapping of the Note 7.
The loss has also seen an effect nationally with the company making up a large portion of the South Korean GDP, forcing the Bank of Korea to adjust its growth forecast. The country at large will therefore be hoping that Samsung can turn its fortune around.
Despite these issues Samsung are still a force to be reckoned with, as their screen and chip-set sectors are continuing to grow.
They also are looking towards the future and putting recent problems behind them. With the launch of another flagship product the Samsung S8 in March 2018.
They know that they have a lot to do in terms of ‘regaining consumer confidence’. As they put it.
The tech giant has been bruised but can not be considered a write-off just yet in the battle for our fingertips and ears. They know they have let their customers down.
So expect something big from them in an effort to regain lost ground on their rivals.