Samsung has been forced to recall 2.5 million Samsung Galaxy Note 7 units because of problems with their battery which can make the device catch fire while being charged.
These devices all have to be substituted, but they are dealing with another problem right now too. Hanjin Shipping has collapsed, and this is going to cause a short term problem for them in terms of getting new devices to their customers. Hanjin has filed for bankruptcy while Samsung uses Hanjin to ship a tenth of their products. There are going to be shipping containers loaded with Galaxy Note 7’s on the way to markets which are not going to make it. The estimated losses are around $1.34 billion due to the recall.
In an effort to win back customers after this fiasco, Samsung is offering customers a $25 for loyalty if they choose to stick with the Samsung Galaxy Note 7 after this recall instead of seeking a refund. This reward will be offered as a credit on your phone bill or a gift card. Also, if you choose to shift to a less expensive smartphone instead like the Samsung Galaxy S7, they will credit the difference between both devices back to you. Let’s see if this works.
Samsung is facing a number of problems right now. Since there’s going to be a number of devices which must be written off or returned to their manufacturer before being sold, Samsung is going to see a lull in their ability to sell stock. If they can’t sell the Note 7, it will certainly have a knock on effect on their sales. There are limits to how quickly they can build more smartphones. The only thing we know for sure is that the Galaxy Note 7 has lost momentum, and if Samsung was trying to capture the market before the Apple iPhone 7 was introduced, they have failed.
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