14 DAY TRIAL // Samsung decided to conduct a global recall of the Galaxy Note 7 due to battery issues that caused the smartphone to catch fire. It is estimated that about 2.5 million Galaxy Note 7 units will be recalled and a new report suggests that this measure will affect the overall smartphone market, not just Samsung.
A report by Business Korea states that the recall of Samsung’s Galaxy Note 7 will affect the global smartphone market in the last quarter of this year. Many consumers were expected to switch to Apple products with the launch of the latest iPhone 7, but it seems that this might not happen at the predicted scale, since the latest Apple smartphone is said to lack innovation.
It appears that the global smartphone market will contract, considering that an alternative to the Galaxy Note 7 is difficult to find. It might be that the same Samsung fans will hesitate to purchase the Galaxy Note 7 when sales restart and actually hold off their money until Samsung announces the Galaxy S8, sometime next year.
In addition, at the beginning of the year, some analysts said that the global smartphone market would contract, and it seems that forecasts aren’t optimistic towards the end of the year either.
Samsung's shares already dropped 7%, meaning that Samsung's market capitalization has lost over $14.3 billion because of the recall.
Samsung advises Note 7 owners to power off their units and return them
Samsung’s Galaxy Note 7 is a powerful smartphone with many selling points, including an iris scanner and improved S Pen. This might be the reason many Note 7 owners will choose to replace their units, rather than get a refund and look for a viable alternative on the market.
Nevertheless, Samsung is said to start shipments of Galaxy Note 7 replacements next week in certain countries and, until then, all Galaxy Note 7 owners are advised to power off their devices and return them to the point of purchase.