We knew that Samsung was going to feel the effects of the Galaxy Note 7 recall, and the subsequent tug off store shelves, after replacement units for what was then the Korean brand’s flagship phablet were still found to have the same issues as the first batch that was initially shipped out. We questioned how it would affect brand loyalty and consumers willingness to buy their devices, out of fear of being burned both literally and metaphorically. We were also waiting for figures that would determine how much damage the Note 7 caused to Samsung’s profits and the numbers are finally in.
Samsung has announced via their News Room that they took a 30% hit in their third quarter profits that came in at KRW 47.82 Trillion, compared to last year’s KRW 51.59 Trillion; pinning the blame directly on the massive global recall and eventual discontinuation of the Galaxy Note 7 altogether. Despite that, Samsung sounds optimistic in the rest of their report as things begin to stabilize for the Korean brand with profits expected to take a turn for the better in the coming months.
Samsung’s mobile division will also be seeking to rebuild the consumer confidence it has lost due to the unfortunate incidents in the past few months, with a promise to “focus on expanding sales of new flagship products with differentiated design and innovative features”.
You can check out related articles plus our thoughts on alternatives for the Galaxy Note 7 in the links down below:
Source: Samsung News Room