14 DAY TRIAL // The Galaxy Note 7 recall has surely affected Samsung and its suppliers in multiple ways, and the company has recently posted its third quarter results which clearly show earnings declined. Many studies have revealed that Samsung may be losing market share and the latest infographic provides a visual representation of the results.
A recent IDC study revealed that Samsung manufactured 72.5 million smartphones in the third quarter of this year, which stretched between July and September. The company’s products accounted for 20% of the global smartphone market.
Meanwhile, it seems that China’s top three smartphone makers produced 80.1 million smartphones combined, which made up 22.1% of the global market. This means that Samsung’s market dominance has been overtaken by smartphone makers in the region, according to Korea Herald.
It will take six months for the market to forget about the Note 7 fiasco
Huawei seems to have produced the most smartphones, 33.6 million, followed by Oppo with 25.3 million, and Vivo with 21.2 million units. Samsung’s market share reached 22.4% in the second quarter, while Huawei, Oppo and Vivo managed to account for 20.8% of the market in the same period of time.
Samsung’s loss of market share can be attributed to the first recall of the Galaxy Note 7, which started in September and affected the consumer trust in the company’s products. The discontinuation of the smartphone will surely have a negative impact in the fourth quarter as well.
However, analysts have stated for Forbes that the Galaxy Note 7 fiasco could be forgotten in about six months, as the industry moves fast and many smartphones are launched every month. The bigger damage will be to its brand, which took years to build.
Samsung is said to have lost $5 billion in recall expenses and missed Galaxy Note 7 sales, but it’s expected to recover part of the damage with the Galaxy S8 flagship. The smartphone is said to arrive in February next year and feature a new and innovative design, together with exciting features.