the Decision on the termination of release of model Galaxy Note 7 after the regular reports of exploding devices, declined on Tuesday on the stock exchange, the price of Samsung Electronics on up to 18 billion dollars. Last week, shares fell on the stock exchange in Seoul is already one-tenth. Wednesday lose one percent. Of the total turnover of the business are Chinese.
the decision to lift the model contributed the largest carriers in the United States and Australia, with a ban on the use of Galaxy Note 7 after last week aboard ignited the device based on “safe”, “improved” series. The phone lit up, despite the fact that was off.
in early September, Samsung has announced a rollback of 2.5 million faulty devices from the market. The disadvantage came from the supplier of the new battery. After the replacement the problem, however, has not disappeared. The flagship product of the largest manufacturer of smartphones will be replaced from the market.
shares of Samsung Electronics in Seoul, losing the third day in a row. However, the drop in the stock on Wednesday by 0.7%. it is only the echo of what happened on Tuesday, when the sale of shares resulted in a more than 8% discount. Counting with weak poniedziałkowym for Samsung, trading day, the company’s value has dropped by one-tenth, that is more than $ 18 billion.
Chance for competitors
As reported by analysts, a great plague Samsung is both a chance for its competitors producing mobile phones with the Android operating system. Will win too, although to a much lesser extent the manufacturer of iPhones, Apple Inc.
market Experts indicate that customers who buy phones mainly on the principle of choice of operating system, that is, the defeat of Samsung over Apple can use, for example, LG Electronics, Google Inc phone. (Google). Both companies presented recently their new products. LG Electronics purchased on the exchange as of Monday, and Tuesday after 5 percent. – Friday was a correction of 3.6%.
- Problems with the hardware, rather, will not change user preferences regarding the choice of operating system in the phone, said Reuters analyst Jan Dawson of Jackdaws Research.
research firm TrendForce zrewidowała up projections for iPhone sales over three million to 208 million units sold. This is half of the projected losses from Samsung (minus 6 million). According to these data, the most due is Samsung to China’s Huawei Technologies, the number three in the market, increasing the number of smartphones sold for as much as 4 million.
“a significant portion of consumer demand will shift now to the three major Chinese brands like Huawei, OPPO and Vivo,” wrote the analysts in the article for customers.
However, for example, in San Francisco, on the territory occupied by Apple, many consumers decided to choose a national manufacturer. In one of the shops in this city the seller in the store T-Mobile said to Reuters that the clients were so zdegustowani events that were selected most frequently the iPhone 7. The same thing said Brian Greene, whose Note 7 caused a fire in a Southwest Airlines plane last week.
Mobile with 882 million dollars for scrap
Samsung on Tuesday decided to dispose of mobile phones in the amount of 882 billion dollars, which will be the biggest failure in tech industry history. Despite this, according to analysts, Samsung is the most selling brand in the world for some time. Latest model LG V20 will reach the United States until the end of the month and will be available only on Verizon’s network.
Bob O’donnell of TECHnalysis Research in the expression for Reuters believes that people rezygnujące with the purchase of a Galaxy Note 7 goes in large part to other Samsung products.
Samsung offers in exchange for Note 7 other phone model Galaxy S7.
the Total cost of the rejection Note 7 estimated by analysts at $ 17 billion. About the same time fell Samsung Electronics shares on the stock exchange.
Apple will have time to improve their reputation in the market by that time, i.e. only as long as does not appear on the market new models of smartphones with Android.
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