Slashdot Mirror
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.
Netcraft confirms it.
6. Unlike Apple, which is the only iOS phone vendor, Samsung makes Android phones, which every other smartphone vendor makes, and can therefore challenge Samsung on anywhere on the price/features spectrum
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.