The company ceased global production of Samsung Galaxy Note 7 as customers reached them for replacement. Whereas Apple’s sales thrive with users switching phone brands. Will Samsung ever recover?
These few weeks have been quite rough for Samsung. Its phones catching fire, overheating and exploding batteries ruined the new launch’s reputation in the market. The company offered replacement of all the damaged models but the number reached so high they eventually had to halt its use. Even the replacement models exploded in a few cases. Pressure grew to an extent where at least some strong action had to be taken.
South Korean tech giant Samsung has permanently ceased production of its high-end Galaxy Note 7 smartphones after reports of devices it had deemed safe catching fire.
“We recently readjusted the production volume for thorough investigation and quality control, but putting consumer safety as top priority, we have reached a final decision to halt production of Galaxy Note 7s,” the company said. “For the benefit of consumers’ safety, we stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production.”
The new launch had already lost its well-earned image in the market and old users have most likely begun looking for some better brand to switch to. This proved to be a perk for its rivals mainly including Google with its pixel phones and Apple with the new iPhone 7. Samsung requests its users to turn their device off while te production ceases.
The company went for temporary suspension before. And now, due to the company suffering a billion dollar loss, suspension got permanent. Samsung’s sales were down and market share fell by 8% which is a big number when it comes to share. The FFA continued to repeat its warning, users are to switch their devices off on board aircraft for safety. This one is not quite strict comparatively. Oculus disables support for the handset with its Gear VR headsets.
But the damage was already done
Samsung reportedly tried to curb the issue and respond to each and every customer facing the problem. It offered replacement models but failed to satisfy its users as those models further exploded as well. The problem’s root was clearly poor system issues with the Galaxy Note 7. One of the world’s largest smartphone makers had failed to solve, and in some cases, acknowledge a huge system problem in its latest launch. A company catching up with the tech giant Apple in a number of regions around the world was now neck-deep curbed in the fierce market competition. Will Samsung ever recover in the future?
Apple’s iPhone sales that were not so good just a few weeks ago are now on fire. Apple’s stock was up $2.66 at $116.72 in afternoon trading. The largest contributor to gains on the S&P 500. Apple gained a little more control over the market share. Samsung users turn to the first best option they can find in the market and that bulging popularity of Apple. Google remains no far in the competition with all the Google vs Apple buzz going around. A 5 percent gain in high-end smartphone market share would increase Apple’s earnings per share by as much as 7 percent.
This will surely increase the company’s revenue before the announcement of Apple’s Q4 earnings call. Perhaps Apple saw this coming and therefore rescheduled its earnings call. However, that was clearly because of the grand release of the new Mac.
However, the overall estimates are still going to be gloomy. Google parent Alphabet Inc briefly eclipsed Apple as the world’s largest company by market capitalization. Samsung proves to be larger than Apple in smartphone sale worldwide. However, it seems Samsung’s new release next, Galaxy Note 8 will not do much good for the company as well.