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Samsung Sales, Profits Dive on Note 7 Recall (pcworld.com)
Samsung's smartphone division struggled to breakeven between July and September as sales plunged due to the recall of its high-end Note 7. The smartphone giant said quarterly sales in its IT and Mobile Communications division were down 15 percent on the same period last year to 22.5 trillion Korean won (US$19.8 billion) while operating profit crashed 95 percent to 100 billion won. From a PCWorld report: Problems with the Note 7 starting hitting sales shortly after it went on sale in mid-August. By early September, reports that several units had caught on fire prompted Samsung to begin a costly recall and replacement program. When it became clear that the replacements had the same problem, Samsung pulled the phone for good. Perhaps remarkably, Samsung said it saw no significant effect during the quarter on sales of its two other high-end handsets, the Galaxy S7 and S7 Edge, but it conceded that "regaining consumer confidence" will be a key objective in the months ahead. And for the current quarter, which includes the key year-end sales period, Samsung said it expects profit in the smartphone divison to bounce back to normal levels due to solid sales of the two flagship phones and increasing sales of mid-level Galaxy A- and J-series handsets. "As for 2017, the company anticipates a turnaround with the launch of new flagship smartphones," it said in a statement. "Next year will also see expansion of Samsung Pay rollouts and cloud-related services as well as the introduction of artificial intelligence related offerings."
Their profits and sales dropped after a massive recall and their products and even their replacements bursting into flame? I did not see that coming!
I'm an American. I love this country and the freedoms that we used to have.
Was anyone actually expecting better profit margins because of the recall?
Their Sales VP needs to burn the midnight oil to come up with a plan that lights a fire under the sales team to return the company to the explosive sales growth they used to enjoy.
They need a big success to life them up after the Note 7.
They have a lot of respect and goodwill from other buyers. I know my wife won't buy any phone that isn't Samsung. (I had one Samsung phone I loved, but I shop around more personally- I'm not brand loyal about anything).
Another mistake like this though would really hurt Samsung. One mistake and most buyers will forgive, a second big mistake and they could rapidly lose market share.
"That's the way to do it" - Punch
Samsung Sales, Profits Rise despite the 2016 Note 7 Recall
Slashdot, fix the reply notifications... You won't get away with it...
I'm not totally up on my corporate accounting / investment info, but this sounds to me like - after a massive recall, they're still operating at a (admittedly tiny) profit. I'm sorry, but if you can have your products explode on people and still be in the black you're doing pretty well.
Take it to the limit, everybody to the limit, come on, everybody fhqwhgads.
I tend to believe Samsung profits will continue to decline. Here are the biggest reasons I tend to believe...
1. Global smartphone sales will slow - Most people will wait longer & longer to replace their phones.
2. More competition - The Chinese competitors are close to catching up in quality...is there really a big difference in quality anymore? Google Pixel phones may one day supplant as the high-end Android phone of choice.
3. Better technology - TSMC seems to be ahead of Samsung in terms of process technology. What will Samsung do when Apple, Qualcomm and nVidia all choose to use TSMC's 10 nm process? Samsung Foundry's profits will decline. Samsung Electronics (Exynos) mobile products will be slower and more power-hungry.
4. Intel is slowly coming - 3D Xpoint will eventually take marketshare - Too bad Intel/Micron may delay the tech for another year....but it will eventually eat at Samsung's SSD profits.
5. The exploding Note - Samsung must have lost a few customers/fans with their handling of the exploding Note 7.
Netcraft confirms it.
I've sat out two upgrade cycles waiting on Samsung to come up with a viable replacement for the S5. I want a battery that can be replaced by mere mortals. It doesn't have to be as easy as the S5 to do so. But, it needs to be replaceable during its lifespan without sending it off to timbuktu.
Seems to me the whole exploding phone business wouldn't have happened had they not been bowing down to the god of thinness. S5 is a great form factor. Why do you need it smaller?
To Copy from One is Plagiarism; To Copy from Many is Research.
well. I've found the A and J series to be mediocre and expensive for what they are. Their 2 year old flagships for 300€ are not a bad deal in my opinion.
Just this morning I read a news report from South Korea (English media) that said 85% of buyers of the Note7 in South Korea have so far refused to turn in their phones. It seems likely that a similar sentiment, regardless of exactly what percentage, exists in other markets.
If one of your main new models is recalled I don't what else you would expect but lower sales? Apple isn't exactly going great either and they don't have any product recalls. It's come down to what happened with PC sales, iPad sales, and smartphone sales. They don't have leaps and bounds in product advances so people don't replace them as often. Heck, my Mother in Law still uses a iPad 2 and doesn't care in the least about a new one. Yes Samsung will have to write off a lot of this loss but I am sure another model is just around the corner. Of course they may miss out on holiday sales, but those could generally be muted by disposable income anyway. Nobody is predicting a great holiday sales season.
Rode a wave of timing related samsung upgrades. Note4, upgraded for a note5 due to no longer being offered thru my carriers insurance. Note5 broke, ended up with an s7 Edge due to N5 no longer being offered and the Note7s exploding, which i absolutely hate. Its a glass clad fucking nightmare. I dislike samsung and it soured me to android so much im jumping ship, off to be an iFag like all the rest of ya's.
LG should spend millions just spamming the entire world: "Why LG? Because we don't glue batteries into our phones."
"LG batteries are reliable. But even if they weren't, changing them is as simple as .
"LG. May your device outlast its battery."
it's on the agenda now to let the hammer fall heavily whenever there's a chance. This issue, and the recent Volkswagen emission problem, was blown up tremendously, and the U.S. sought for the most devastating consequences they could impair on the foreign competitors.
Apple's Antenna-gate and Bend-gate was relatively quietly swept under the rug. And did you know that G.M. only paid about $45 million last time they had a serious recall after several people died due to them lying about faults in their vehicles? Cheap, compared to the $18 billion VW has to pay.
I know people are yelping about phones, but I'm typing this staring at a Samsung monitor, beside another Samsung monitor that is showing the news via a tv tuner card. And neither monitor has caused me a dead pixel in more than 5 years, and they use very little power and are very bright and colorful. And they were cheaper than any monitor I've ever used. And *NEITHER* has exploded or burst into flames!!! I know that North Korean leader Kim Jong-un was buying up Samsung note 7 phones and packing them into the nose of long range rockets, so each phone could explode, and a few dozen would create an explosion big enough to destroy half a city. Samsung makes things other than phones, and not all their phones explode or blow up (some might only accidentally catch fire due to the battery).