BUMMER: 5-7 Million Samsung Galaxy Note 7 Users Will Switch to iPhone 7:KGI Report

Must Read

Free Netflix in India: A Result of Slow Growth In Q3 2020?

Netflix is testing a new strategy that could lead to free Netflix in India. The online streaming...

Jio Pages: The Indian Browser Reliance Is Betting On Now!

Looks like Reliance wants to establish Jio as a synonym of technology. After launching a fleet of...

Tesla First Cancels Return Policy And Now Cuts Warranty Period

Just last week Elon Musk surprised everyone by cutting the price of Tesla Model S twice in...

Samsung Electronics Company (KRX:005930) may have halted the production of Galaxy Note 7 to avoid any further humiliation, but the ghost of Note 7 is still haunting the company, apparently. While the Korean electronics giant is leaving no stone unturned in a bid to safeguard its brand reputation and to keep its users glued to devices, the latest report from KGI Security claims that the damages could be severe than expected. According to the report, Samsung could do nothing but seeing 5-7 million of either existing users or potential buyers of Galaxy Note 7 switching to iPhone 7.

Samsung, however, expects that customers will remain loyal, especially when the company has got a deal to offer on world’s most selling smartphone of the first half of 2016, Galaxy S7. Contradicting to Samsung’s belief, KGI Security report claims that users and potential buyers of Galaxy Note 7 waited long enough ignoring Galaxy S7 and S7 Edge; therefore it’s quite unlikely those users would ever settle with almost a year-old smartphone. Instead, just launched iPhone 7 is a better bet than Galaxy S7 for them. In fact, a sizable share of these users may never come back to Samsung, adds the report.

Obviously, this is all expectations and estimations, and no one ones how the dust will settle eventually. The tide has not turned completely to favour Apple Inc. (NASDAQ:AAPL) as reports are claiming many users have even refused to return their Galaxy Note 7.

Advertisements

While everything remains speculated, one thing is sure; the Note 7 debacle is going to cost Samsung a bomb, be it financial or brand reputation. The company has already lost $2.3 billion due to Galaxy Note 7 disaster. The KGI Security report further claims that out of 12 million Note 7 orders, at least 50% would be adding revenue in Apple’s book, while rest being shared amongst other Android manufacturers like Huawei. Also, there is every possibility that some may turn towards Google Pixel phones, albeit it’s out of stock currently.

Apple May See Record Sales of iPhone 7 in Q4 2016

If the estimation of KGI remains correct, Apple could close the first fiscal quarter of 2017 with record iPhone sales. For the last two years, the sales of iPhone in the first fiscal quarter has been clocking over 74 million units. An additional sale of 5 to 7 million units of immensely popular iPhone 7 could make the quarterly sales of iPhone jump up by another 15%, making ongoing quarter the best performing quarter in Apple’s history.

Analysts believe that financial losses may not hurt Samsung as much as brand reputation and shake customers’ confidence. The company, though, may overcome from the disaster in the next 3 to 4 months, and also regain its lost market within the next six months but going further it’s living on the edge for Samsung. One more round of similar fault and the world’s largest smartphone manufacturer will find itself in really hot waters for sure.

The investigation to find the real cause of errors is in full swing, and soon Samsung may learn what went wrong with Galaxy Note 7. Along with that, the management at Samsung who tried to take a shot at iPhone 7, has also learnt a lesson: never try to react out of desperation, especially when you are already ruling the roost and have a competitor like Apple.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Advertisements

Latest News

Google Boots Out 3 Immensely Popular Android Apps from Play Store: Questions About Content Policing Resurface

With such a flourishing wilderness of Android apps on the Google Play Store, there is every likelihood...

Reliance Future Group Deal In The Soup: SIAC Orders To Put The Deal On Hold

When Reliance agreed to acquire Future Group for $3.4 billion, recently, the share of Reliance Industries Limited rallied on the stock market....

Can Facebook Be Trusted For Newly Announced Hosting and Shopping Services?

Every coin has two sides. For Facebook Inc. (NASDAQ:FB), the positive side says that it has launched interesting, new features to further...

When the Going Gets Tough, the Tough Gather Online

Tech shows; we all know them, love them, and wish we could get to them. Unfortunately, that's not always possible. Or is...

Flipkart, Amazon Hurtle To Secure Their Slice in Aditya Birla Fashion

The battle conch for the festive season has already been blown. Now in a bid to take control of a new frontier,...

Jio Pages: The Indian Browser Reliance Is Betting On Now!

Looks like Reliance wants to establish Jio as a synonym of technology. After launching a fleet of Jio products in the last...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This