Note 7 Recall
As internet users are having fun making memes from the recent Galaxy Note 7 recall, the company is doing all it can to save face. In a statement released two days ago, Samsung has stopped global sales of the Galaxy Note 7.
Song Myung, an analyst from HI Investment Securities, told Reuters that this could translate to a loss of the $17 billion that the company was expected to raise in sales during the Note 7’s lifetime.
When compared to the $5 billion that the company was predicted to lose from the Galaxy Note 7 recall announced in early September, this will be a significant blow to the company, which until now has been posting consistently high sales numbers with its flagship models.
This phone, which costs around $900, has been reported to overheat and catch fire on numerous occasions.
What Happens Now?
To fix this, mess Samsung has released a statement asking everyone who owns one of these devices to cease using them, power them down and contact the retailer who sold it.
When you return your Note 7, you will get to pick one of the following two options:
- A full refund from the retailer
- Have it replaced with the Galaxy S7 or the Galaxy S7 edge, whichever the customer prefers
To encourage customers to pick the second option, Samsung is offering a $25 gift card, store credit or bill credit from selected retail outlets to anyone who chooses an exchange over the refund.
According to the statement released by the company, this discontinuation is as a result of a safety risk posed by the devices.
Any Hope for the Company?
The full impact of the Galaxy Note 7 recall and this discontinuation is still unknown. However, considering that the company will be losing six full months of sales from a flagship smartphone, some analysts believe that the company’s fourth quarter profit from the mobile division will suffer a hit.
Fortunately, Samsung is a big company with a large portfolio of profitable devices hence it has high chances of recovering. Only time will tell.