Samsung started recycling "GalaxyNote7" of a fire accident. After ready to replace the machine, from September 21, the largest seller of cars in the United States after South Korea began to change. Samsung announced on September 2, recycling program, in addition to the countries have issued a ban the use of advice, and new accidents happened, things get worse. Samsung hopes to calm things down as soon as possible, control the impact on the business at a minimum, to restore the damaged image.
"Replacement Note7", South Korea's communications operators stores appear such posted on September 19, in the United States before the first began to change. Note7 is samsung has just listed on August 19, the latest model, USES the 5.7 inches of big screen, installed the advanced functions such as personal certification through the iris, in South Korea's price of 6600 yuan or so, belong to high-end models.
It is known Note7 parts production process problems of the battery. Samsung decided to supply recycling in 10 countries and regions have almost all of the products, the equivalent of 2.5 million units. Products for the China due to the different batteries, continued in sales, but before the formal supply sales experience of more than 1800 machine to recycle.
Samsung in the United States will provide to consumers to replace $25 gift card. In South Korea to update software, make change the object models can charge to the battery capacity is 60% when charging, it is to urge consumers to change and use the coup.
South Korean media that if fast, samsung in 9 month can complete most of the phones sold in the world of recycling, and periodically to restart the sales. But as time goes on, produced the aftermath of the spread, will inevitably impact on performance. SK securities initially forecast Note7 sales in the third quarter of 5 million, announced in September 2 samsung recycled downward revisions for 3 million units. Now, thanks to the subsequent chaos has been cut to 1.4 million.
Samsung announced in September 2, recycling of press conference interpretation said "there is no injuries", but according to the U.S. consumer product safety commission (the CPSC) statistics, as of September 15, in the United States has been 26 burns, 55 flames to auto accident and the garage.
The federal aviation administration on September 8, suggest not to open the plane Note7, then Japan and South Korea and other related departments and then follow up. 9, the U.S. consumer product safety commission called for, not limited to, the plane will try to use less and charge. Samsung also again in 10, published on the website require the user to stop using the announcements. Purpose is to prevent new accidents before complete recovery.
Also is considered to be forged the case of the accident happened, produce the effect is easy to damage the brand image of the accident. On September 18, China appeared on the Internet are using Note7 explosion of information, and photos. Samsung in 19, the speculation is caused by the external heating test results, are busy.
Because of concerns that it makes the brand image constantly is damaged, it is easy to affect the Note7 product sales, samsung's total market value dropped to 207 trillion won, up more than 30 trillion won less than before the accident. For now though shares in a slow recovery, but was caught out of the production problem battery series of samsung SDI's share price is still wandering in the five months to the lowest point.
In the smartphone sector recovery leads, the samsung merger results showing a profit continued to grow. Say that compression type number has significant effect, cost reduction, "GalaxyS7" listed in March sales momentum is good, the mobile phone manufacturers in China under the condition of increasing offensive, market share is only slightly decreased, recovery made an important contribution to the performance. Note7 originally is to continue to lead the trend of strategic models, the setback let samsung hit.
Attention focus to the market will be released in early October in the merger is expected to 3 quarter results. Inevitably impact in the smartphone business, showing a strong semiconductor sector and recovering appliances department can provide how much support a focus.