Because of the numerous cases of batteries overheating and burning smartphone Galaxy Note 7 Samsung has not only begun to review the first batch of devices. According to official data, production trends suspended and commercial networks and operators have been instructed to stop selling Galaxy Note 7.
Some analysts argue that the entire story of the Galaxy Note 7 will turn for Samsung losses of at least $ 17 billion. According to some estimates, the company expects to sell at least 19 million Smartphones, and in addition to the cost of a review and reversal of defective copies, this amount will go down and lost profits for the entire product life cycle. The situation is aggravated by lawsuits from the owners of smartphones, whose inflammation caused damage to their property, even though the cost of compensation is not so great on the background of the overall losses. Worst of all, experts say that the damage suffered Samsung smartphones reputation, and now the manufacturer has not only drop a profit in the fourth quarter by 85%, but will not be able to sell in the desired amounts of other smartphone models. In addition, Samsung smartphone components for other manufacturers probably will enjoy less trust after the event.
For Samsung with the value of market capitalization of $ 235 billion., And cash reserves of about $ 69 billion. $ 17 billion loss. Because of the scandal with the Galaxy Note 7 will not be fatal, but the consequences of this history could undermine the market position of the Korean manufacturer.