the debacle of The Galaxy Note 7 will cost Samsung about eur 2.5 billion, which will weigh on the budget of the next fiscal quarters. Did you know the same company, with a statement that is followed by the withdrawal from the market of the device itself.
Samsung has already allocated part of the costs in the third quarter of 2016, but “we expect that the decline in the turnover due to the interruption of sales will have a negative impact on profit is negative in the next two quarters“. In other words, the blow will be felt more or less until the middle of 2017.
“Samsung Electronics aims to normalize the mobile sector by expanding the sales of top of the range, such as the Galaxy S7 and the Galaxy S7 Edge“, adds the press note published by the company. “In addition, the company will focus on improving the safety of products for consumers, by putting in place significant changes in the processes of quality control”.
Samsung has not explained precisely how they divided these 2.5 billion cost, but it is reasonable to suppose that the greater part is due to the failure of the sale of (at least) 2.5 million Galaxy Notes 7 who had already arrived in the shops. Then there are those a substitute, put into circulation after the first warning, but it is equally defective.
Samsung has then had to deal with some expenses for the retreat. In the USA, he had to obtain the authorization for the transport of explosive materials, and ship to customer packaging, fire-retardant. The company has spent money for the campaigns, will have to “give in” many high-end smartphone replacement, refund the money and give discount coupons.
Finally, there are the costs for the disposal of Notes 7 withdrawn. Impossible to assess, then, how much it will cost to compensate for the damage: according to a recent survey, based on little more than 1,000 u.s. consumers, 40% of the customers do not intend to buy another Samsung product in the future.
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