Note 7 Disaster Leaves Dent The Size Of Billions
The Samsung Galaxy S6 and S6 Edge devices had a bigger problem than its lack of expandable storage and its fairly small battery capacity.
Samsung had miscalculated the demand ratio of the Galaxy S6 duo, particularly the S6 Edge, which resulted in mass shortage in production of the Edge variant, leading to plenty of loss in sales.
That may have seemed bad then but, now, Samsung has a bigger problem to deal with. The Galaxy Note 7 with its exploding batteries caused a bigger blow to the manufacturer.
The Galaxy Note 7’s mistake is merely due to the company’s poor quality control. Some users were shocked with explosions when they had plugged the device in to charge.
Samsung had to issue a massive recall which affected its market value by $7 billion. Following Samsung’s recent statement, the company stated that the overall bill for the whole ceased production and recall add up to about $1 billion.
To make it worse, a Samsung Securities analyst has stated that the potential loss of profits from the company’s effort to fix the situation for the rest of 2016 could total up to a whopping $740 million.