Although Samsung can easily swallow the loss of writing off the Note 7 the company's long term reputation is going to be harder to ignore.
Extracts from an Asian financial paper.
Samsung faces lawsuits. At least two customers are taking the company to court in the US to claim compensation on damages stemming from the faulty smartphone. In its September 15th recall, the US regulator said the firm has received: 92 reports of batteries overheating 26 reports of burns 55 reports of property damage and halts sales and exchanges of the device globally as it investigates fire claims.
Analysts predict Samsung’s lost sales from the Note 7 could top 15 billion euros. The firm was expected to generate this profit during the device’s product cycle. Samsung, the world’s top-selling smartphone company, is waiting for the results of an inquiry by the US safety regulators. Some investors and analysts say scrapping the Note 7 and focusing on more successful models could limit the financial and reputational damage. “The Note 7 is forever going to be tarnished and the danger is that the brand becomes irretrievably damaged as well,” – Stephen Webb, partner at UK law firm Weightmans.
