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Samsung said loss or painful Note 7 recall cost $ 1 billion

  • Author:James
  • Source:http://www.jaskeyworld.com/
  • Release Date:2016-09-05

According to media reports, Samsung Electronics due to problems with a battery recall 2.5 million Galaxy Note 7. It is estimated that the recall action is likely to take up to $ 1 billion.(custom speaker


Approximately more than thirty Note 7 was found to have battery fire and explosion.


The accident can be said not have been worse. In the global smart phone market competition intense background. As a leader in Android phones, Samsung can not afford any brand reputation damage.


Professor, National University of Singapore Sea Jin pointed out that "the recall of the potential damage to the reputation of Samsung, is much larger than the short-term economic losses."custom speaker


According to Credit Suisse, the big Korean Securities and Pelham Smithers Associates estimates that Samsung's recall cost about $ 1 billion, there may be less than $ 1 billion. When asked about the financial impact of the event, the high Dong Samsung smartphone business executives (Dong-Jin Koh) on Friday's news conference that "the amount of loss it hurts."(custom speaker)


Estimated impact of $ 1 billion is only 5% this year, Samsung 23 trillion won (US $ 20.6 billion) in net profit estimate. It is unclear whether Samsung SDI subsidiary battery manufacturers will bear part of the cost of the recall. Samsung did not disclose Note 7 battery supplier, but the supplier may bear part of the cost will be recalled. According to the Korea Economic Daily reported, Samsung Electronics, Samsung SDI supply 70% of the battery, China's new energy technology companies will supply the remaining 30 percent, Samsung SDI has been ordered to stop battery.(custom speaker)


According to Credit Suisse estimates that the sale of each one Note 7, Samsung Electronics achieved revenue of approximately $ 600 and $ 108 of operating profit. In Keon Han headed analysts said Note 7 for the current quarter shipment target may be 4000000-5000000 its last quarter shipment target is 8 million to 9 million.


The next few weeks, Samsung's brand recall will cause much damage. After a protracted legal dispute with Apple, Samsung have been working through the first to launch a large-screen device and the curved screen device to reshape the reputation for quality and innovation. Note 7 launch, has won widespread praise, listed on the initial fully grasp the opportunities brought by the new iPhone is not yet available. Today, the phone in 10 countries of stock.(custom speaker)


Note 7 first-mover advantage with respect to the original iPhone, and now have lost the. "IDC analyst Bryan Ma in Singapore (Bryan Ma) that" Samsung this quarter will be significantly affected, but if they can immediately solve the problem, the situation will be reversed immediately, they will not be long-term effects. "


The recall to Samsung left a stain on history, but it is still relatively fast response for serious product failure.

Equity analyst Pelham Smithers Associates Sanghyun Park believe, believe that global recall Note 7 of the decision directly from the Samsung chairman Lee Kun-hee's son, Lee Jae-yong, vice chairman of Samsung. Since Lee in May 2014 of a heart attack in hospital, Mr Lee replaced his father operating companies.(custom speaker)


"In addition to Lee Jae-yong addition, Samsung no one can make such a bold decision." Sanghyun Park said, "As a member of the founding family of Samsung, Lee Jae-yong wants to defend the reputation of his grandfather founded the company." This Samsung a sequence of such a serious event of product failure, how to reduce the loss of reputation, Samsung Samsung is the best test.(custom speaker)

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