BayStreet Research says that prior to the voluntary recall, year-over-year sales of the Galaxy Note 7 were up 25% over sales of the Samsung Galaxy Note 5. Now, with U.S. carrier sales of the device set to resume on October 21st, the research firm sees Galaxy Note 7 sales tracking just 60% of Samsung Galaxy Note 5 revenue. Prior to the Galaxy Note 7 explosions, BayStreet's Cliff Maldonado said that he had expected the Galaxy Note 7 to do at least as well as the Galaxy S7 and Galaxy S7 edge did in the first half of the year. On a sequential basis, Samsung has sold 7.2 million smartphone units in the third quarter, down 6% on a quarter-by-quarter basis.
"This is very unfortunate for Samsung as the Note 7 was in a position to perform as well as the GS7/GS7E had in the first half of the year. We have now lowered our Note 7 forecast to ~60% of the Samsung Galaxy Note 5 and are closely tracking how long consumer’s memories are regarding this unfortunate incident. Best case, this is similar to an automobile recall and quickly forgotten with the new / replacement item viewed as safer than before. Worse case, this is remembered like the quality of Siri or Apple Maps and very difficult for consumers to forget."-Cliff Maldonado, analyst, BayStreet Research
One report says that Samsung felt that it could pick up a ton of sales from iPhone users this year by loading the Galaxy Note 7 with features like the iris scanner. Samsung based its game plan on reports, like the one from KGI Securities' super Apple analyst Ming-Chi Kuo, that predicted back in April that the iPhone 7 would not have many attractive selling points.