Samsung Expects To Lose $3Billion Over The Note 7

[DroidModderX]

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We all know by now that what ended up being the best phone of the year has also been recalled twice and discontinued due to the fact that it has a tendency to randomly explode. We already knew that the initial recall of the device cost Samsung about $1Billion, but it turns out the Note 7 debacle will end up costing Samsung much more.

The fact that the Note 7 has been discontinued means that Samsung will need to refund all the sales that were made. They are also having to miss out on sales for the next several months leading up to the Galaxy S8 release. To soften the blow Samsung has made a push to market the S7 and S7 Edge in hopes that consumers will be willing to pick up these devices in place of the Note 7 they had or would have purchased. Luckily Samsung will still be plenty profitable even thought the expect to lose $3Billion over the next few months in revenue and losses.

via Samsung

 

[Jeffrey]

That's 3 Billion in cash.. how many Billions in market value.. My guess 15

 

[mountainbikermark]

I wish everyone would stop using the word e!p9d3 and go back to catch fire. All the government snooping the site looking for terrorist lingo is slowing down my Tapatalk.

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[shockracer]

I'm not jumping backwards to a phone that locks me down for another year. Make it a buy one get one free and maybe, but paying full price for (we have 2 note 7s) an S7 Edge -$100 is not going to happen!

 

[olghb01]

I already took mine back on both recalls. I like the Note 7 but, my safety comes first! So, I went back to the S7 Edge for now. I'm not giving up on Sammy yet!

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[New2u]

That's 3 Billion in cash.. how many Billions in market value.. My guess 15

Market value always fluctuates, but at least with market value, you can recover from that, the pure cash 3 billion is how much they are guaranteed to not get back though. While i think it will take some time before they get back into the same placement that they previously have been, if they do. I will say that this was definitely a hit that allowed many people to move over to the iPhone because it was a pretty good option that had recently come out.

 

[cr6]

Being that Samsung has been at least number one or two in terms of market share over the past 6 years straight, I don't see this hurting them in the long run. The fact of the matter is, they make a quality product. So they had screwup with the Note 7, it's not going make the lion's share of their fans, leave them for good. Nobody innovates the way Samsung does. While Apple & the iPhone has always been right up there with them, ever since Steve Jobs passed, they haven't done squat in terms of innovation.
Point is, Sammy will bounce back from this.

S5 tap'n