Samsung's overall sales drop in China after the whole Note 7 "arrogance" debacle

Samsung's overall sales drop in China after the whole Note 7
By now, everyone and their dog knows about the Galaxy Note 7 recall ordeal. Short recap: defective battery, exploding devices, huge confusion with carriers and 3rd party retailers, and — finally — a steady flow of safe new Note 7 units. But the saga is far from over. Samsung has yet to deal with the influx of fraudulent reports of defective phones, consumer mistrust in Sammy devices, and a heavy loss of momentum, especially when considering the fact that the iPhone 7 is now out, the LG V20 is well on its way, and the Google Pixel phones have just been announced.

The problems for Samsung are even bigger in China, where the company did not have a recall program. The reasoning behind this was pretty simple — the Note 7 phones that are on sale in China since day 1 are the ones equipped with a battery made by “Amperex Technology Limited ". In other words, the "safe battery" that all the revised units now have inside them as well. Still, amidst the chaos and probably thanks to a lack of communication by Sammy, Chinese users and media did not take kindly to the fact that their Note 7 units weren't recalled. The company was called "arrogant" and "discriminating". Ouch!

Seeing as China is still the biggest market for smartphones, this does not really bode well for Samsung's foreseeable future. Ever since the whole exploding Note 7 story started, analysts have dropped their projections for the phone's sales for the year numerous times. They are now down by 38% from the original expectations — or, in other words, down to 8 million units shipped, from an initial projection of 13 million units.

Retailers are also reporting that Samsung's other handsets, like the flagship Galaxy S7 and S7 edge, are also taking a hit, as customers are looking to competitor devices. And, in China, there's plenty of domestic brands ready and willing to take a piece of Sammy's pie. Some analysts are even expecting the company to take a hit across its other electronics products (like washing machines).

According to early projections, the whole Note 7 debacle might end up costing Samsung somewhere between $1 billion and $2 billion. The company is about to post an earnings report this Friday and investors might want to buckle up for some bad news.



source: Bloomberg

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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25 Comments

3. GreenMan

Posts: 2697; Member since: Nov 09, 2015

This Samsung Saga is quite a bit like The Volkswagen Saga, innit...? VW have have lost over 2 Billions in lawsuits and the likes... Lets see what happens with Samsung... I usually don't like Samsung Phones, because of all that bloatware mainly... But now TouchWiz; specially The Grace UI is looking so sleek and simplistic that I might buy my first Sammy...! Perhaps a Galaxy S6 on a killer deal...? Not too interested about Google Nexus 5X anymore... I've a Nexus now, and don't want to get yet another Nexus when I've all those choices around...! And of course, I can 'freeze' all that bloatware and hide the apps on The Samsung so its not too big of a deal I suppose? Err... To ANY SAMSUNG USER, you CAN freeze the stock Samsung Apps, right??? Wait, I've to look it up first...! Never used Touchwiz in my life...!!! Would truly appreciate a thorough answer from a Samsung User, preferably from an S6 user... S'Day!

4. trojan_horse

Posts: 5868; Member since: May 06, 2016

Quote: "I usually don't like Samsung phones, because of all that bloatware mainly..." "Bloatware" is 100% subjective. I personnaly like playing around with the stock Samsung Apps.

17. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Samsung will survive, smart phone is only a fraction of their total economy. I personally would be looking forward to their next wave of computing devices which would not only be better but bundled with more goodies. I know their style and they know their bases.

28. cheetah2k

Posts: 2230; Member since: Jan 16, 2011

Chinese not happy a china made N7 wasn't recalled...??? Seriously WTF they only make themselves look bad LOL

8. DeusExCellula

Posts: 1390; Member since: Oct 05, 2014

Yes you can freeze the apps. -S6 user

25. iDing-Dong unregistered

S6 is where Samsung started to do better in software. Not the best but better. I sold the S6 edge got the S7 edge it feels great. Everything is much quicker. Would love to get the Note 7.

27. jessy90

Posts: 162; Member since: Aug 01, 2016

I cant imagin how laggy touchwiz was before the s6,since the s7 and note 7 are still laggy. Damn.

11. ph00ny

Posts: 2027; Member since: May 26, 2011

VW has known about the issue, they've purposely engineered it to work and defeat the emission presets. I highly doubt any manufacturer in their right mind would try to engineer their device battery getting blown up As for bloat and grace ui 1. I agree there are some bloats and it's not that bad. It's similar to what a lot of other manufacturers do it with their devices 2. Some folks are now complaining that certain apps aren't being included by default but what happened to bloat complaints? 3. Grace UI isn't that much different from Touchwiz UI. What do you like about the Grace UI that you didn't like in touchwiz? you can probably get a theme to match grace ui 4. You can disable pretty much every default app

5. Kumar123 unregistered

"Retailers are also reporting that Samsung's other handsets, like the flagship Galaxy S7 and S7 edge, are also taking a hit, as customers are looking to competitor devices." That's what I said. But blind fanboys refused to believe that and vehemently said it won't affect the sales of other Samsung phones. LOL at them.

14. aegislash

Posts: 1480; Member since: Jan 27, 2015

Anyone who believed it wouldn't affect the sales of Samsung's other phones is a lost cause. People don't care that it was just the Note7, they care more about the name tied to the Note7, which is Samsung. This incident has tarnished the Samsung name in many peoples' eyes, unfortunately...but that's just how it is. Samsung's going to have to work on fixing their image now, because a proper recall/replacement isn't going to suddenly make people forget.

18. Kumar123 unregistered

Glad to see you post some sensible comment. But I wish you posted this when the blind sheep argued that I was only saying that because I hate samsung but not because it's a fact. Good comment and +1.

22. aegislash

Posts: 1480; Member since: Jan 27, 2015

I've posted plenty of sensible comments about this whole Samsung thing, and even shut down several people who were comparing it to past #gates that Apple has dealt with. But yeah, it isn't a matter of *hating Samsung*, it's just fact. Samsung is my favorite company, and I have absolutely no defense for them over this issue. They dug their own grave.

15. iC-118

Posts: 260; Member since: Sep 29, 2016

Where's Maherk Samsung fanboy? Kumar you sure did shut and busted him up sevrals off time.

16. darkkjedii

Posts: 30977; Member since: Feb 05, 2011

Proofreading is fundamental.

20. Kumar123 unregistered

Well, Hello there. Aren't you supposed to be me? LMAO. You are supposed to be my another account because some very "Wise" people here said you are me. I know who you are, It takes me five minutes (I read three of your comments) to figure out who you are but this time I'll keep quite about it. It's more fun if people think you are me. But People will figure out who you are very soon ( you are very easy to identify BTW ) and they will realize how stupid they really are. Anyway, Yes, I busted that sheep multiple times and showed his hypocrisy, that's why he is so salty towards me. LMAO. So he came up with a delusional defensive plan which involves calling me a stalker. Apparently he thinks he is famous person and people stalk him for this amazing comments. So in his mind replying to his comments and showing how much of a hypocrite he is equal to stalking him. LMAO. Tell you the truth, I'm having much fun in this website because there are people like him existed here. It's fun reading their comment and it's also fun replying to their post. Having fun and saying stuff that I feel like saying are the most important stuff to me.

21. TerryTerius unregistered

In China's case it doesn't exactly help that the media was running interference without actually knowing what they were talking about. That said, it has always been obvious this would affect Samsung. The question was simply how much. We still don't know that answer, and only time will tell. Neither is it really possible to predict what the future holds one way or another. Who knows ¯\_(ツ)_/¯ but it will be interesting to see how it all plays out.

6. ctdog4748

Posts: 797; Member since: Mar 05, 2016

The Chinese market is a tough nut to crack. I don't feel bad for Samsung facing these kinds of obstacles, and yes, I have no sympathy for Apples struggles in the China market either. Any company that goes there, especially ones with the resources Apple and Samsung has, already knows they're in for a difficult time. As both companies know very well, China tends to circle the proverbial wagons and protect their home grown interests, often with the help of state TV running additional interference.

7. nctx77

Posts: 2540; Member since: Sep 03, 2013

At least the numbers won't be explosive!

10. Atrixboyyy

Posts: 596; Member since: Nov 03, 2011

Funny thing is China spoke to soon and out their ass at the same time by not knowing which Notes they had in the first place

12. Doakie

Posts: 2478; Member since: May 06, 2009

Two things the USA should export to Asia: Public Relations teams, and Marketing Departments. They seem lost on both fronts.

13. senseiJ

Posts: 172; Member since: May 02, 2015

That's expected.Besides, China's economy is not looking so great. They just need to rebound on S8.

19. DaveElliott

Posts: 148; Member since: Sep 20, 2012

This just hurried the inevitable in China. Winter is coming.

23. kiko007

Posts: 7493; Member since: Feb 17, 2016

Hey!!!! Don't still my thunder heathen!

24. xondk

Posts: 1904; Member since: Mar 25, 2014

China of all people get safe devices, but because they didn't get a recall, because their devices upset, they are upset and that affects Samsung....what the huh?

29. RodrigoFreijanes

Posts: 58; Member since: Apr 05, 2013

I give up Samsung. Now, only Apple. I'm tired about Android and Samsung.

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