Following the numerous incidents of Galaxy Note 7, the South Korean giant Samsung plans a decline in profit of about three billion dollars.
Samsung plans a decrease of EUR 2.7 billion in earnings
Samsung comes announced this Friday, October 14 that malfunctions in its PHABLET Galaxy Note 7 would have an impact on its profits. The South Korean group plans a decline of around three billion dollars. Issues of autonomy and overheating the Galaxy Note 7 battery that will have an impact on the operating result of the next two quarters for the group. Recall that Samsung had already recalled 2.5 million units due to incidents that could cause explosions and the PHABLET were prohibited on US flights.
Samsung has stopped the production of Galaxy Note 7 Tuesday, October 11
Following malfunctions related to its series PHABLET Galaxy Note 7, the South Korean giant has temporarily suspended production. According to the South Korean agency Yonhap, the company simply stopped producing its PHABLET. To prevent models explode and cause accidents, the Galaxy Note 7 would therefore more assembled. Faces many problems associated with overheating of his replacement models, the group launched a recall program and replacement of defective units to the delight of experts and consumers.
But the Black Series has hit the group that encountered a new problem. Replacement models were overheating and autonomy proved mediocre. An alternative model would have shown signs of fatigue giving off smoke, moreover, aboard a US plane. Replacement PHABLET were also prone to incidents and began to catch fire. A real black series for the South Korean group, forcing it to stop production to prevent other problems occur. Following these new twists, Samsung had stopped production of its PHABLET and expected to lose 2.7 billion euros on operating income, three billion.
A direct impact on the profit of the company
Batteries that overheat, others explode, people wounded, replace defective units, the Samsung Group has chained problems and the setbacks with its new flagship. Bottom line, the group expects a decrease in operating income of around three billion dollars. Recall that the group unveiled two flagship stores that could cushion the fall in earnings, with the Galaxy S7 and S7 Galaxy Edge, two smartphones that sell well.
Samsung launches a recall procedure under high protection PHABLET
In addition to the financial loss and brand of the group, Samsung must also take care to recover the Galaxy Note 7 still in circulation in nature. For this, the group sent to every buyer who bought the PHABLET a package procedure with the least singular . While a conventional back is to simply place the product in a box and send everything by post, that of the Galaxy Note 7 is under high security.