The world’s largest smartphone maker just got majorly embarrassed. Just one month after releasing the Galaxy Note 7 smartphone, Samsung has recalled their flagship phone series. What does this mean for Samsung? Who benefits from this?
Samsung Note 7 Explodes – Market Takes Note
Samsung (SSNLF) announced Friday it had found a problem with the battery in some of the Note 7 phones and is halting sales in 10 countries, including South Korea and the United States. Samsung has already sold 2.5 million of the phones, and must now recall the majority of sales.
The company also announced it will replace user’s devices with new products. However, the recall will take 2 weeks to begin, leaving many customers in an awkward position.
Chinese phones were not affected as company used another battery, though Chinese models may still be recalled, as well. Samsung has already received dozens of alerts worldwide about phones catching fire while charging. The company announced it found 24 devices for every million units sold.
5 Cryptos Set To Soar For 2022 Expert reveals the strongest cryptocurrency investments for 2022 (NOT Dogecoin...)
U.S. mobile networks sell the Galaxy Note 7 for at least $850. Company executives declined to comment on exactly how much replacing all the devices would cost.
“It is a big amount that is heartbreaking,” said Koh Dong-jin, president of Samsung’s mobile communications business.
The phone, which received stellar reviews, was expected to keep or grow Samsung’s 22 percent market share going edge over Apple’s 12 percent market share. Samsung’s recall couldn’t have come at a worse time, with Apple unveiling its iPhone 7 and iPhone 7 Plus smartphones in the next week.
While the recall is a huge embarrassment for Samsung, it’s great news for Samsung’s archrival, Apple.
The average US investor has a particularly difficult time acquiring Samsung shares on the Korean exchange. However, anyone who does have shares should drop them. Immediately.
Apple (AAPL) has already seen a bump in share price as a result of the news, and should see a nice spike after next week’s big reveal of the iPhone 7 smartphone.
Watch this video about the Samsung Galaxy Note 7 by Ariel Gonzalez
Samsung will be fine in the long term, but is about
to take a beating for the next few months.
How to Diversify Your Savings in Uncertain Times With GOLD: With interest rate hikes, geopolitical unrest, increasing national debt, and inflation on the rise, there is no time like the present to protect the purchasing power of your savings with precious metals.
If you're looking to live the dream life that you deserve, Click Here Now!
Apart from Samsung, Apple is also facing its own problem with European Commission. Want the full story? Check this news here!
The statements, views, and opinions of any article, contribution, editorial, or advertisement in this publication are not necessarily those of The Capitalist or its editorial staff, and are not considered an endorsement, sponsorship, or recommendation of any referenced product, service, issuer, or groups of issuers.
This publication provides general information about certain subjects, and should not be construed or taken as advice (legal, financial, investment, tax, or otherwise). Do not construe or take any information in this publication as a solicitation, offer, opinion, or recommendation to buy or sell any securities, bonds, or other financial instruments or to provide any legal, financial, investment, tax, or other advice or service about the suitability or profitability of any financial instruments or investments.
The Capitalist disclaims any liability for the accuracy of or your reliance on any statements, views, opinions, or information in this publication.