How much will the Note7 Fiasco cost?
Samsung had reduced the profit forecast for Q3 of this year by $2.3 billion, this was even before the Note 7 production had been ceased. However, Reuters is now saying they expect Note7’s firey demise to cost Samsung around $17 billion in revenue. Why is this so high? If you take into account that Samsung was speculating the Note7 was to sell 19 million units.
The Note7 has now been crowned by many the worst Android device every produced, a stark juxtaposition to the reviews of the device before the health risk. Samsung is planning to stabilise their profits by focusing on selling the Galaxy S7 and S7 edge and improving their quality assurance processes. Samsung’s mobile division has taken a big hit, their brand and reputation have been put to the test, and any smaller company would have been closing their doors right now. Time can heal old wounds.