Samsung already feeling the effects of the Galaxy Note7 Recall And Sales Halt
You are all aware of how Samsung was forced to make a global recall of the Galaxy Note7. This was due to the fact that the devices were bursting into flames while charging. This was among the most reported stories in the tech sphere for the last couple of weeks.
The Galaxy Note7 batteries were said to be the cause of these explosions, putting the company in a rather tricky situation. The company had already produced 2.5 million units including the unsold stock, and already tells you the massive losses the company was going to make from this unfortunate reports which forced them to halt sales.
In the US, Samsung already started an exchange program where users who had already bought the Note7 could exchange it for another Note7 or exchange it for an S7 or S7 Edge as well as any Note7 accessory.
For UK customers Samsung says it is in collaboration with its partners and operators, and that it will voluntarily replace their current device with a new one. It adds that UK customers will be contacted by the provider or operator from which they purchased the product in order to arrange their device exchange.
‘’Until a replacement device is provided, Samsung asks all customers with a Galaxy Note7 smartphone to power down your device and return it to its place of purchase at your earliest opportunity.’’ the company said in a statement.
“We are expediting replacement devices so that they can be provided through the exchange program as conveniently as possible and in compliance with related regulations. We sincerely thank our customers for their understanding and patience.” DJ Koh, President of Mobile Communications Business, Samsung Electronics said in a previous statement.
Already, the company is feeling the effects of this recall. According to a report published in the Wall Street Journal, Investors wiped more than $10 billion off Samsung Electronics Co.’s market value on Friday. This the report says was after air-safety regulators singled out the company’s Galaxy Note 7 smartphone as a potential fire hazard, prompting airlines to issue warnings to passengers. In Seoul, Samsung’s shares are reported to have closed at 1.575 million won ($1,432), down 3.9%.
It is not clear yet the amount in losses the Samsung is going to make but according to company’s mobile business Koh Dong Jin the amount was “heartbreaking,”. Analysts, however, estimate the impact to be at about $1 billion.
In the meantime, if you had pre-ordered your Galaxy Note7 and you are waiting for delivery: Samsung has apologized for not receiving it yet. It says it will have a new Galaxy Note7 on the way to you as soon as possible.
