Note 7 fiasco could burn a $17 billion hole in Samsung accounts
by UNTV News | Posted on Tuesday, October 11th, 2016
A model poses for photographs with a Galaxy Note 7 new smartphone during its launching ceremony in Seoul, South Korea, August 11, 2016. REUTERS/Kim Hong-Ji/File Photo
Samsung Electronics’ worst-ever recall could cost the company as much as $17 billion after it halted sales of its flagship Galaxy Note 7 for a second time, spelling an almost certain end for the ill-fated premium model.
Samsung announced the recall of 2.5 million Note 7s in early September following numerous reports of the phones catching fire and on Tuesday the crisis deepened: The company told mobile carriers to stop sales or exchange of the $882 device and asked users to shut off their phones while it investigated new reports of fires in replacement Note 7s.
As the world’s top-selling smartphone company awaits results of probe by U.S. safety regulators, some investors and analysts predict Samsung may scrap the Note 7 and move on to successor models to limit the financial and reputational damage.
“In the worst case scenario, the U.S. could conclude the product is fundamentally flawed and ban sales of the device,” said Song Myung-sub, an analyst at HI Investment Securities.
If Samsung stops selling the Note 7s, that will translate into lost sales of up to 19 million phones, or nearly $17 billion, that the firm was expected to generate during the Note 7’s product cycle, according to analysts including those at Credit Suisse.
That’s a big increase from $5 billion in missed sales and recall costs analysts initially expected Samsung to incur under the assumption that the firm would resume global Note 7 sales in the fourth quarter.
Chances of that now look slim. South Korea’s Hankyoreh newspaper, citing unnamed sources, said on Tuesday Samsung will likely stop Note 7 sales permanently. Samsung did not comment on the report.
“This has probably killed the Note 7 brand name,” said Edward Snyder, the managing director of Charter Equity Research.
“By the time they fix the problem they have to go through recertification and requalification and by the time that happens, they’re going up against the (Galaxy) S8 launch.”
Samsung has already temporarily halted Note 7 production, a source familiar with the matter said on Monday. That could lead to a write-down in inventory in the event Samsung has to end sales entirely.
Broker Nomura estimates Samsung may have to incur up to 1.6 trillion won of disposal costs in the fourth quarter, assuming around 4 million Note 7s have been made.
For Samsung, with a market value of $235 billion and $69 billion in cash and equivalents at the end of June, the loss of sales of one model could be absorbed.
The bigger problem will be long-term impact on its reputation and brand, analysts and experts say.
“We think the Note 7 incident may hurt demand for Samsung’s other smartphone models as well,” Nomura analysts said in a note, adding it may have to slash Samsung’s fourth-quarter mobile division profit estimates by as much as 85 percent.
Verizon Communications Inc., the largest U.S. wireless carrier, is already considering shifting marketing away from the troubled Note 7s, a company spokesman said on Monday.
That will likely boost rival products such as the new Google Pixel and Apple Inc’s new iPhone taking market share from Samsung, as most vendors launch new products ahead of the critical year-end holiday sales season.
“The (Note 7) unit is forever going to be tarnished and the danger is that the brand becomes irretrievably damaged as well,” said Stephen Robb, a partner at UK law firm Weightmans.
“They need to be writing to every customer with an apology and some form of ‘compensation’… It will clearly be costly for the company but the alternative is to end up going the way of Nokia and Blackberry.”
Samsung also faces lawsuits, with at least two consumers taking the company to the court in the United States to claim compensation on damages stemming from the faulty smartphone.
The firm received 92 reports of batteries overheating in the United States, including 26 reports of burns and 55 reports of property damage, according to the U.S. regulator’s announcement of the Sept. 15 recall.
The Note 7 woes may also roil Samsung’s component business, an important and growing source of revenue, as it provides key smartphone parts such as phone screens and memory chips.
Falling Note 7-related orders could not only cut overall revenue for the component business unit, but also crimp prices of such parts, analysts said. — Reuters
by UNTV News | Posted on Tuesday, September 5th, 2017
Meet the four-legged furry friends chosen to test run a prototype ‘smart vest’ which could turn stray dogs into heroes by spotting potentially unfriendly strangers and other dangers within a community.
“Our philosophy at work is to show how creativity and technology can be used together to help solve problems for the people or society,” said Satit Jantawiwat, chief creative officer at Chiel.
A hidden camera is attached to the collar of a dog’s vest and activated when its sensors detect aggressive barking noises, sending a live streaming video of what the dog saw in front of them to a central location.
The Phuket-base Soi Dog Foundation, a group formed over a decade ago to save street dogs and cats in Thailand, welcomed the initiative but deemed the vests to be in an early ‘trial and error’ stage.
“It’s too early a stage to actually say how practical the vests are. We really don’t know how they’re going to work. So, it’s going to be trial and error. We’re also going to be on a steep learning curve at the start and then we will iron out differences as we move forward,” said Soi Dog Foundation managing director Martin Turner.
The project began in March 2017 and the Cheil company said there will be more development before the project is introduced for a full trial run in the community. — Kath Dumaraos | UNTV News & Rescue
by UNTV News and Rescue | Posted on Thursday, March 30th, 2017
South Korean tech giant Samsung Electronics lost to its rival Apple in the smartphone scene after the embarrassing withdrawal of the fire-prone Note 7S.
Now, it is back with a bang.
Boasting some of the largest wrap-around screens ever made, Samsung’s long-awaited Galaxy S8 is finally unveiled.
“This is a big one, and Ithink that Samsung had a lot to prove — and I think they did. I mean I haven’t used the phone for extended period of time but what I’ve seen so far is very positive,” said Patrick Moorhead, president and principal analyst of Moor Insights & Strategy.
Two versions of the Galaxy S8, code-named ‘Dream’, internally, were launched at a media event here in New York on Wednesday: 6.2-inch and 5.8-inch curved screens – the largest to date for Samsung’s premium smartphones.
“We spent a little bit of time about the new battery suit safety program they had, which I think was a good thing, but I think to consumers, if it’s a great phone, that’s going to just fade into the background,” Moorhead said.
The phones, which will go on sale on April 21, are slightly longer but comparable in width to their predecessors as Samsung has eliminated nearly all of the bezel borders around the face to maximize the screen surface area.
The S8 features Samsung’s new artificial intelligence service, Bixby, with functions including a voice-commanded assistant system similar to Apple’s Siri. — UNTV News and Rescue
by UNTV News | Posted on Wednesday, February 8th, 2017
MANILA, Philippines — Officials of the Bureau of Customs (BOC) have already opened on January 12 the boxes from China which was named under consignee, Autumnway
The boxes contain an estimated 400 fake iPhones, 100 fake Samsung phones, fake Samsung powerbanks, other cellphone gadgets and even vape cigarettes.
There were also spare parts like LCD screens which can be used to make cellphones.
According to the Intellectual Property Rights Division (IPRD), the boxes were suspicious because the declared items in the document states office supplies, office equipment and furniture.
BOC is preparing for the cases to be filed against the consignee, broker and importer of the smuggled gadgets.
“It will be automatic seizure because of misdeclaration. We’ll file the necessary administrative charges against the broker and the importer…this is a criminal offense and it’s smuggling,” said Atty. Zsae Carrie de Guzman, chief of the IPRD.
“We have placed this shipment under surveillance for a week because we had derogatory information that the container contains cellphones,” added De Guzman.
Meanwhile, intelligence reports that are currently being verified by BOC say, more shipments are expected to arrive in the country containing various smuggled items.
For this reason, BOC is continuing to guard ports to ensure that no smuggled items will be sold in the market. — UNTV News and Rescue
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