the reason for the refusal from the production of Samsung Galaxy Note 7 — that it is impossible to solve the problem with the battery overheating which led to the fire smartphone.
“the Owners of the first version of Galaxy Note 7 or superseded versions of the Galaxy 7 need to turn off your device and use one of the sharing options, including a full refund at the point of purchase”, — is spoken in the message manufacturer.
Samsung said that the safety of users in a given situation is most important. The company is still trying to understand the causes of marriage and announced the beginning of another investigation of the cases of ignition devices.
Users who have already bought the Galaxy Note 7, you can count on a refund or replacement with another device. In South Korea, smartphone owners will be able to return the money since October 13.
the Blow to the wallet and reputation
due to recall and stop production of the smartphone Samsung Electronics shares October 11 fell by 9%. The company’s capitalization fell by $ 17 billion. Bloomberg notes that this is the maximum daily fall since October 24, 2008, when the company’s stock price fell by 13.8%.
in Addition to reducing the capitalization of the manufacturer will have to face other expenses. Lost revenue from the suspension of production and sales of this smartphone will be $ 17 billion, according to Reuters, citing analysts at Credit Suisse. Thus in quantitative terms, the sales could reach about 19 million units (its average price — $ 882).
According to estimates by Japanese brokerage Nomura, for disposal of defective smartphones, Galaxy Note 7, Samsung will take $ 1.4 billion To date produced about 4 million smartphones of this model.
Analysts are able 85% to reduce the profits of unit production of mobile devices Samsung for the fourth quarter of 2016.
in addition, Nomura believes that the current failure will have a strong impact not only on the financial situation of the company, but also on the reputation of the brand. “We believe that the incidents with the Galaxy Note 7 may affect the demand for other models of smartphones of the company Samsung,” said analysts.
Failed the second attempt
August 2, smartphone went on sale in South Korea, and from August 19 — in the United States, China, Australia and other countries. In Russia, the start of receipt of the devices in stores was postponed several times, but was never implemented.
“To return obtained through pre-order or purchased outside Russia smartphones the company is asked to contact the hotline, told the “Газете.Ru” in the press service of Samsung.
the Manufacturer offers a replacement Galaxy Note 7 Galaxy S7 or S7 Edge, with compensation for the difference in cost of the devices and get a discount in the amount of 3 thousand rubles. for any purchases in all retail stores.
the First reports of the fire appeared in the press almost immediately after receipt Galaxy Note 7 stores in first-wave countries. By the end of August, South Korean media have counted more than five cases of explosion of the battery device.
In most Samsung then spoke about the transfer of supply of the smartphone for an indefinite period in connection “with additional testing related to the quality of the product.”
September 2 Financial Times wrote about the “global opinion” of the devices due to the more than 35 cases (17 in South Korea, 17 in the United States and one in Taiwan) fire batteries, fixed for September 1.
Samsung then announced that all the sold devices (about 2.5 million) will be free of charge replaced by new one. The reports States that the cause of the sudden fire was a defective battery from lithium.
In late September, Samsung has resumed sales of the corrected version of the smartphone in South Korea and other countries. However, the device of the new party, according to South Korea, continued overheat.
talking About the defect in neighboring China. Resident of this country named hi Randi said about the explosion of a Samsung Galaxy Note 7 a day after its acquisition.
In the USA was recorded in one week, five incidents of fire this device. One of them Galaxy Note 7 on fire aboard the Southwest Airlines before departure. In another situation, an American, writes The Verge, was due to the ignition device in the hospital.
Good news for Apple
Bloomberg had previously linked the failure of the Galaxy Note 7 with an attempt to overtake Apple. Samsung Electronics, according to the publication, has decided to accelerate the launch of the Galaxy Note 7 due to the relatively weak market expectations in connection with the release of iPhone 7 and iPhone 7 Plus.
user Guide Samsung after learning about the absence of dramatic changes in new iPhone, was confident in the success of your smartphone. The company has forced suppliers to speed up production.
the Developers had to sacrifice the higher resolution screen and the upgraded battery with fast charging. However, the partners Samsung has not been able to fully carry out technological tests of the device.
given the failure of the smartphone Galaxy Note 7 is Apple’s stock by 11 October on the NASDAQ rose by 1.74% to $ 116,73, reaching a peak in December 2015.
Credit Suisse Analyst, Kulbinder Garcha believes that the current problems Samsung will help Apple Corporation to increase market share.
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