Note 7 Fiasco and Stiff Competition Affects Samsung’s Shares

1it enterprise

1it enterpriseDespite being on top of the smartphone market in the third quarter Samsung Electronics was battered with the impact of the Galaxy Note 7 recall and increased competition in the US, India and China. According to a report, the industry grew by 375 million units i.e. 6 percent in the quarter. Apple and Samsung saw volume drop whereas Oppo, Vivo and Huawei like Chinese brands posted strong growth. The loss of the several million Note 7 shipments is the prime reason of Samsung slowdown and on top of that, the brutal competition the Chinese brands in the huge markets of India and China. With increased S7 and S7 Edge promotions, Samsung is filling some but not all. The recall for Note 7 started in September and as the issue persists with the replaced handsets, the company stopped the production of the handsets in October.

 

Samsung shipped around 75.3 million handsets, which is less than the shipments in the same quarter of last year by 10 percent i.e. 83.8 million. This is Samsung’s lowest growth rate in roughly 2 years. Director at the strategic analytics Linda Sui reported that the Samsung Shipments figure doesn’t include Note 7 volumes. However, the point is the volume will still be less if the number for the Note 7 is added to the calculation.