Galaxy Note 7 delay sees Samsung's market value drop by $7bn

Galaxy Note 7 delay sees Samsung's market value drop by $7bn
According to a new report, the Galaxy Note 7's battery issue has not only descended the launch of Samsung's flagship phablet into chaos, but has also hit the company's market share to the tune of $7 billion. Though Samsung appears to have identified the issue — a faulty battery pack provided by one of its manufacturing partners — the company is still expected to announce a recall in the immediate future. 

Numerous reports of Note 7 handsets exploding whilst on charge have cast a black cloud over what initially appeared the perfect roll-out. With 400,000+ units shipped in South Korea, things were going especially smoothly before, well, crashing and burning. A new report from Reuters has pointed out the swift drop in Samsung's MV, and with IFA delivering the usual conveyor belt of devices, this incident could hardly have been more ill-timed. 

Along with the slew of mostly Android manufacturers that could shift more units at Samsung's expense, there's also Apple, whose new iPhone 7 duo will be announced next week. Indeed, HDC Asset Management fund manager Park Jung-hoon believes it is inevitable that Samsung's anticipated H2 profits will take a big hit. In an assessment likely shared by many with financial interests in Samsung, he said:


Only time will tell if Samsung can turn this launch around. But with some prospective buyers likely to swerve an $850 device that may or may not explode if charged, the potential long-term damage this could do to Samsung's PR and consumer trust will no doubt keep bosses awake for the time being. 

On a lighter note, it appears that only a small portion of Note 7 devices sold — supposedly less than 0.1 percent — have been affected. This should go some way to explaining why, out of nearly half a million sold, only a few have reported a problem. Additionally, it is not believed that launches beyond South Korea will be affected by the devices featuring rogue batteries, despite delays


source: Reuters

Related phones

Galaxy Note 7
  • Display 5.7" 1440 x 2560 pixels
  • Camera 12 MP / 5 MP front
  • Processor Qualcomm Snapdragon 820, Quad-core, 2150 MHz
  • Storage 64 GB + microSDXC
  • Battery 3500 mAh

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88 Comments

1. trojan_horse

Posts: 5868; Member since: May 06, 2016

How the hell does a slow-down of 400,000 Note7 units cause a whopping $7bn drop in market value? Something smells fishy.

4. Nopers unregistered

Trust and disappointment.

7. trojan_horse

Posts: 5868; Member since: May 06, 2016

Nah! Here's my conspiracy theory: Apple knew Samsung was going to release the Note7 a month earlier, in order to cash in on early buyers and overtake the iPhone, so Apple secretly contacted the Korean firm which manufactures batteries for the Note7 and paid them to make defective batteries for the Note7, so as to sabbotage Samsung. /s

9. WeezyF

Posts: 155; Member since: Jul 09, 2015

Lol! Samsung should legit be scared of huawei though. I know this is out of topic but the way note 7 was priced compared to other smartphones is too steep.

19. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Really? You're comparing a cheap-tastic phone for $400 from Huawei to the Note 7 with advanced features? You do realize that Huawei phones don't compete with the S and Note. Right? You do realize that Samsung makes low costing phones too. Right?

25. WeezyF

Posts: 155; Member since: Jul 09, 2015

I totally agree with you. To be honest what i am trying ro say is that people around me are less inclined to make a big purchase like the note 7, when you can have a huawei for a cheaper price. Overall you can never compare the amount of work put into both phones. Seriously, samsung needs to work on the software.

92. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

I'm guessing you haven't seen a Huawei phone lately.

10. Mxyzptlk unregistered

What drugs are you on and where can I get them at?

16. NarutoKage14

Posts: 1324; Member since: Aug 31, 2016

With the current world's air pollution just take a deep breath.

23. tedkord

Posts: 17357; Member since: Jun 17, 2009

I think you might be right! Plus, they're also working with Hillary to rig the election!

62. nctx77

Posts: 2540; Member since: Sep 03, 2013

Sure, 400,000 units in a week was really scaring Apple. You watch to much TV young man!

81. hillaryisacriminal

Posts: 242; Member since: Aug 26, 2016

no but it is scaring the samsung investor .

91. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Apple might have talked to the CEO of Samsung: "dude, we'll give you a brand new iPhone 7 - plus, for you, with 256 GB of memory - if you fk up the Note!"

15. Bm888

Posts: 517; Member since: Jul 06, 2015

Disappointing times for Sammy... slowdown after ripping big in technology advances but out of it bet lessons will be learnt in future flagships... think the engineers were too overconfident this time round

18. WeezyF

Posts: 155; Member since: Jul 09, 2015

+100000. What u wrote makes alot of sense.

20. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Over a battery? You are really saying this over a defective battery? WTF does this have to do with a company Samsung hired to make the battery that is defective? I mean you can read...right? You did understand that the issue isn't the phone, but a defective battery? You do understand that? if so, then WTF does that have to do with engineering? SMDH!

47. Bm888

Posts: 517; Member since: Jul 06, 2015

you do realize that batteries are made from engineering point of view.. and whether hired or not.. Sammy gave them overtrust coz if not what what's its quality department doing to let a battery or even a sticking pen be let out and released?? 0MFG to you

93. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Because a battery is not part of the phone. No, the battery is more like a bumper sticker...

5. bobby84

Posts: 595; Member since: May 13, 2016

Because the press can cause it to drop a few dollars per share.

27. ChickenDinner

Posts: 30; Member since: Feb 14, 2016

It amazes me how some of the people on here are trying to defend Samsung on every issue. -Lag issue, not samsung's fault -Exploding issues, not samsung's fault -Slower than iPhone 6s, not samsung's fault Of course the share price is dropping. Why? Because it's their fault!

77. sissy246

Posts: 7115; Member since: Mar 04, 2015

No different then when iphone people defend apple

8. sarcastic_nerd unregistered

You do not know how the stock market works, do you?

11. Mxyzptlk unregistered

Psst, he doesn't know what goodwill and public image is.

24. tedkord

Posts: 17357; Member since: Jun 17, 2009

Sure he does. They're the kind of things that you improve by actually acting on an issue, and not blame your users for it.

43. meanestgenius

Posts: 22072; Member since: May 28, 2014

"They're the kind of things that you improve by actually acting on an issue, and not blame your users for it." Hmmm...that sounds eerily familiar. Wasn't there a company that blamed their users for "holding it wrong"? Has a piece of half eaten fruit as a logo...

45. tedkord

Posts: 17357; Member since: Jun 17, 2009

I have no idea what you're talking about.

55. meanestgenius

Posts: 22072; Member since: May 28, 2014

Lmao!

58. Mxyzptlk unregistered

Is the response you would get if you poll people on what a blackberry is. Don't mind the bandwagon riders because no one is talking about their platform of choice.

68. meanestgenius

Posts: 22072; Member since: May 28, 2014

The bumburn runs deep in you. It's evident in your answer, as you're clearly in pain over the facts I mentioned concerning Apple's initial poor handling of the "antenna gate" issue. Only an insecure child would worry about who is talking about their platform of choice. Thanks for admitting that you fit the description.

98. Mxyzptlk unregistered

You're the bumburned one. As you can see, I said something about blackberry and you flew in like a wasp out of heck. Get over it. "Only an insecure child would worry about who is talking about their platform of choice." I guess you're pretty insecure then. That would explain why you're so salty all of the time.

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