samsung note 7 recall

Samsung Note 7 Recall

Samsung has declared a recall of the Galaxy Note 7 after struggling with its fallout. The issue reported is exploding of the cell phone’s faulty batteries when it is put on charging.This is a great debacle for Samsung. 35 mobiles were affected out of 2.5m. The recall happened just weeks after the smooth and grand launch of Note 7. It took place just as the sales started getting momentum when the operating profit and revenue were 8.14 trillion and 50.9 trillion respectively. After the scattered reports of battery burst they have halted the sale and has promised to issue replacement to anyone affected.The recall was announced to refrain from getting a bad name to the brand. They quickly want to satisfy the customers before people start associating the name ‘SAMSUNG’ to faulty hardware.

 

note 7 explosion

Though, All this had hampered the sale and gave a bad name to Samsung, yet despite all this their earnings improved. This is because of Samsung’s hold on manufacturing and supplying chain. The second reason is also valid. It is Samsung’s rival Apple. Apple’s launches had not been so smooth in past. People had complained about bending of iphone 6 in pockets and non-receptive iphone 4 if held incorrectly. Other competitors like Intel too had recall issues.

 

Samsung is still the most sold-out in the list. Even the company declared to have launched 2.5m Note 7 phones, out of which 1m had already been sold with only 35 or some near figure with fault which they had promised to replace at earliest. As per tech reviewers, Note 7 had been the best smartphone ever with curved and bright screen and sleek. The battery charge in less time and last longer.

 

Though Samsung had not given clear statement on the estimated cost, analysts have made it a cut around 1-2 billion. They thought it will be a 51 trillion won, that actually was 49 trillion won, admitted by Samsung.The Note 7 recall had really taken a toll over the Samsung business. Obviously if it wouldn’t have happened Samsung was originally expected to perform great this year .Analysts still expect if they get spared from the further trouble and no second recall for Note 7 is made, the share may continuously grow upward. They made a remarkable balance in their other businesses like semiconductors, display panels and memory chips. A week back report of 3rd quarter operating profit from the phone division was around won of 2.7 trillion, that of semiconductors was around 3.3 trillion won on the quarterly sales of total 12.9 trillion won. The display division had also helped by price rebound screens using LEDs incurred 760 billion won and other electronic units were at 635 billion won which was estimated to be around 76% higher, as calculated by analysts.

 

All these are estimations are made upon data. Net Income and all division’s performance record will be released soon after audit is disclosed by Samsung. Regarding the issue of Samsung Note 7, the company had asked all global partners to the sale, unless the investigations are over.

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