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Samsung is going through a rather rough time as the Korean tech company is faced with one of its biggest mishaps in recent memory. The company launched its Galaxy Note 7 hoping that it will be met with the same success as the S7 line. The Samsung Galaxy S7 line made some really interesting changes to what its predecessor offered.
The device brought back the highly demanded Micro SD Card slot, water resistant, and Samsung made great strives to make the software side – Touchwiz—more intuitive and functional.
Both the S7 and the S7 Edge quickly gain traction and became one of the bestselling handsets of 2016. Samsung rightfully vouch to double down on the success of the S7 by completely skipping the “6” in the Note series and opting to go with the Note 7 Moniker thereby creating a continuous flow while generating more sales.
Things were going pretty well for the Note 7 and pre-sales were good. Everything worked out great for Samsung, well at least that is what they thought.
Reports began circulating that the Note 7’s battery is poorly optimized causing overheating and in some cases, explosions. Samsung outsourced the battery aspects of the Note 7 to two firms and it looks like one of them stuff theirs with dynamite powder.
As the days went by, reports of overheating and exploding Note 7s became too frequent and the Korean company had to act, it did so swiftly, initiating a global recall of all Note 7 handsets.
The replacement handsets will soon reach their respective owners and the entire odeal would cost Sammy close to $7 billion. The company’s stocks plummeted so did its value losing over $22 billion in the space of two days.
In a recent battle of the fittest with Foxconn, Samsung, who by the way is the fifth largest stakeholder in Sharp, surrendered 35.8 million of its shares when Foxconn won the bid to buy the Japanese company for $3.5 billion.
Samsung’s cashed shares were worth about $45 million, based on Sharp’s closing price of 128 yen per share (about USD$1.25) before the end of trading and though the Korean company is outbidded by Foxconn – who have a close working relationship with Apple as they manufacturer of their A series chipsets for iPhones –, their business relationship won’t be affected as Samsung buys LCD panels produced through a Sharp-Foxconn venture.
Things are looking rather gloom for Samsung from a financial standpoint but its chip and display business could cover a good deal of the loss.
It is yet to be seen how far fetch the damage is and how the company will recover in the long term but we are hoping that Samsung finds its footing by the time the Galaxy S8 gets here.