MacRumors

macrumors bot
Original poster
Apr 12, 2001
53,025
14,770



Samsung is likely to permanently stop selling its Galaxy Note 7 smartphones following the latest halt of sales and production, according to reports on Tuesday.

Samsung halted sales and paused production of the Note 7 smartphones in the last 24 hours and told owners to power down the devices while it investigates reports of fires, fueling expectations the tech giant will scrap the flagship device.

galaxy-note7_product_l-800x428.jpg

The BBC this morning referred to "unnamed sources" cited by South Korean Hankyoreh newspaper claiming that Samsung would can the device and seek to make up for lost Note 7 sales through its Galaxy S7 models as well as the Note 5, which was the predecessor for the Note 7.

Separately, Reuters reported Samsung is now considering permanently halting sales of its flagship smartphones as an option, "according to a source familiar with the matter". The person declined to be identified because they were not authorized to speak publicly.

Samsung did not immediately comment on the BBC report, but told Reuters no final decision had been made. Meanwhile, the South Korean finance minister said it would hurt the country's exports if the device is scrapped altogether.
 
"Right now we can't tell what the impact will be in the long term. It's up to the company and the government cannot interfere," Yoo Il-ho said. "But if they do scrap the model, it will have a negative impact on exports." 

According to analysts, the Note 7 recall could cost Samsung as many as 19 million lost unit sales, or as much as $17 billion, if it permanently stops selling the smartphone for a second time, following multiple reports of replacement handsets setting on fire. 
"This has probably killed the Note 7 brand name," said Edward Snyder, managing director of Charter Equity Research. "By the time they fix the problem they have to go through recertification and re-qualification and by the time that happens, they're going up against the [Galaxy] S8 launch." 
Investors wiped $18.8 billion off Samsung's market value on Tuesday as its shares closed down 8 percent, their biggest daily percentage decline since 2008. Meanwhile, Apple stock closed on Monday up 1.9 percent at $116.05 per share, its highest value this year. Apple is now trading at levels not seen since December 2015 and has jumped 20 percent over the past three months, partly on renewed optimism over iPhone 7 sales, but also in response to its arch rival's woes.

"The Apple share price was doing nothing for over a year - it was considered ex-growth - now it's possibly the only game in town when it comes to buying a mobile phone," said Michelle McGrade, chief investment officer at TD Direct Investing.

However, with last week's launch of its own-branded Pixel smartphones, Google is also poised to benefit.

"From Google's perspective the timing couldn't have worked out better for them in that they're essentially trying to compete now in the premium sector against the likes of Apple and Samsung," said Creative Strategies analyst Ben Bajarin, speaking to the BBC.
"Now with this issue around Samsung and some questions and stigma around the brand, the product itself, could certainly help Google out. But I think Apple's definitely the biggest beneficiary from here. If there were people on the fence about whether or not to get an iPhone 7 Plus, for example, which is kind of in the same size range as the Note 7, that was one of the things that we think is benefitting Apple the most, just because that's a competitive product and it's an established brand," Mr Bajarin added. 
The news comes on the same day Apple and Samsung are set to face off in the Supreme Court over a long-running smartphone design patent case.

Update: The Wall Street Journal has reported that Samsung has officially axed the Note 7, while Samsung has told TechCrunch: "We can confirm the report that Samsung has permanently discontinued the production of Galaxy Note 7."

Article Link: Apple Shares Hit New High for 2016 as Samsung Considers Scrapping Note 7 [Update: Note 7 Officially Discontinued]
 

thekeyring

macrumors 68040
Jan 5, 2012
3,451
2,083
London
It'll be really interesting to see how this plays out. I wonder if Google will come in and take the #1 Android phone spot, or whether Samsung will hang in their thanks to the Galaxy S7/edge.
 
  • Like
Reactions: keysofanxiety
Comment

576316

macrumors 601
May 19, 2011
4,056
2,556
A new brand?

Introducing the Samsung Galaxy iFone.

Don't tempt them. Somebody at Samsung has been pushing that idea for a while, I can tell.
[doublepost=1476174258][/doublepost]Samsung stock down by 8%. Are they gonna recover from this? How do you encourage people to place trust in their products again? Samsung should shut up shop and disband immediately, the CEO should resign. DOWN WITH THE SHAMESUNG.

But seriously, are they gonna recover from this?
 
Comment

diipii

macrumors 6502a
Dec 6, 2012
618
551
UK



Samsung is likely to permanently stop selling its Galaxy Note 7 smartphones following the latest halt of sales and production, according to reports on Tuesday.

Samsung halted sales and paused production of the Note 7 smartphones in the last 24 hours and told owners to power down the devices while it investigates reports of fires, fueling expectations the tech giant will scrap the flagship device.

galaxy-note7_product_l-800x428.jpg

The BBC this morning referred to "unnamed sources" cited by South Korean Hankyoreh newspaper claiming that Samsung would can the device and seek to make up for lost Note 7 sales through its Galaxy S7 models as well as the Note 5, which was the predecessor for the Note 7.

Separately, Reuters reported Samsung is now considering permanently halting sales of its flagship smartphones as an option, "according to a source familiar with the matter". The person declined to be identified because they were not authorized to speak publicly.

Samsung did not immediately comment on the BBC report, but told Reuters no final decision had been made. Meanwhile, the South Korean finance minister said it would hurt the country's exports if the device is scrapped altogether.

"Right now we can't tell what the impact will be in the long term. It's up to the company and the government cannot interfere," Yoo Il-ho said. "But if they do scrap the model, it will have a negative impact on exports."

According to analysts, the Note 7 recall could cost Samsung as many as 19 million lost unit sales, or as much as $17 billion, if it permanently stops selling the smartphone for a second time, following multiple reports of replacement handsets setting on fire.
Investors wiped $18.8 billion off Samsung's market value on Tuesday as its shares closed down 8 percent, their biggest daily percentage decline since 2008. Meanwhile, Apple stock closed on Monday up 1.9 percent at $116.05 per share, its highest value this year. Apple is now trading at levels not seen since December 2015 and has jumped 20 percent over the past three months, partly on renewed optimism over iPhone 7 sales, but also in response to its arch rival's woes.

"The Apple share price was doing nothing for over a year - it was considered ex-growth - now it's possibly the only game in town when it comes to buying a mobile phone," said Michelle McGrade, chief investment officer at TD Direct Investing.

However, with last week's launch of its own-branded Pixel smartphones, Google is also expected to benefit.

"From Google's perspective the timing couldn't have worked out better for them in that they're essentially trying to compete now in the premium sector against the likes of Apple and Samsung," said Creative Strategies analyst Ben Bajarin, speaking to the BBC.
The news comes on the same day the two companies are set to face off in the Supreme Court over a long-running smartphone design patent case.

Article Link: Apple Shares Hit New High for 2016 as Samsung Considers Scrapping Note 7 Brand

This could affect consumer confidence in all smart phones.
 
Comment

kis

Suspended
Aug 10, 2007
1,702
765
Switzerland
If you Google "S7 EDGE" + "burns" it's somewhat suspicious that those also seem to burn quite a lot, not unlike the Note 7 (the reports say they just went up in flames out of the blue when not being charged). So not sure the S7 series will be the ideal candidate to make up for lost Note 7 sales :-/
 
Comment

vipergts2207

macrumors 68030
Apr 7, 2009
2,610
5,472
Columbus, OH
I remember reading somewhere, don't know if maybe it was an article or user here on Macrumors, but they predicated that within 5 years Samsung would no longer be in the smartphone market, at all. Originally I thought that was an absolutely stupid prediction, but with this news and Google's launch of their own phone, this may actually be a real possibility.

Edit-
Found an article on it, and I'll be damned, if it's not the Ben Bajarin guy mentioned at the end of this article that made the prediction. Granted, his original reasoning for the cause of a Samsung smartphone exit would be off.

http://www.androidauthority.com/bajarin-samsung-leave-phone-market-653377/
 
Last edited:
Comment

Michael Scrip

macrumors 603
Mar 4, 2011
6,390
8,445
NC
It'll be really interesting to see how this plays out. I wonder if Google will come in and take the #1 Android phone spot, or whether Samsung will hang in their thanks to the Galaxy S7/edge.

You realize Samsung can sell around 80 million smartphones a quarter, right? That's how they're in the #1 spot.

I don't see Google taking the #1 spot... ever.

For instance... the top 5 smartphone vendors last quarter were:

Samsung
Apple
Huawei
OPPO
Vivo

And in order to even be on that list... you had to have sold at least 16 million phones.

Well... I'm having a tough time believing Google will ever sell 16 million phones in a quarter... let alone 80 million.

Even if Samsung's sales tank... there's still no way Google Pixel phones will sell in any kind of huge volume.
 
Last edited:
Comment

killawat

macrumors 65816
Sep 11, 2014
1,456
2,292
Everyone is saying how this could happen to Apple, they share the same suppliers , etc but at the end of the day, Apple didn't need Samsung to fall over in order to move units. Both could coexist in the market (and they have, although Apple takes most of the profit).
Samsung did this to themselves, rushing to market, pissing off it's own fans.
 
Comment

Solomani

macrumors 601
Sep 25, 2012
4,152
9,035
Slapfish, North Carolina
I remember reading somewhere, don't know if maybe it was an article or user here on Macrumors, but they predicated that within 5 years Samsung would no longer be in the smartphone market, at all. Originally I thought that was an absolutely stupid prediction, but with this news and Google's launch of their own phone, this may actually be a real possibility.

Fine. They could always go back to toasters and washing machines. The quality of Samsung appliances have been neglected lately. Exploding washing machines.
 
Comment

Mr Fusion

macrumors 6502a
May 7, 2007
812
853
Nice bait thread title. Couldn't leave it at Apple's finances, had to throw Samsung's name in there. How many added clicks did that net you?

In a month where Apple's dying Mac lineup was supposed to be revamped, MacRumors has gotten to the bottom of the story... By posting article after article of incremental beta updates as front-page news. Well done.

I guess I'm missing the big picture. I visit websites like this because Apple products interest me. But all I get from this site now are shareholder results and software developer ads. Thanks.
 
Comment

ronntaylor

macrumors regular
Jan 16, 2004
219
3,169
Flushing, New York
Google and LG have handsets coming out weeks after this fiasco started. They could rush shipments, but unlike Samsung, they are waiting.

Apple will benefit obviously. Just imagine if there weren't so many back orders. They would get a lot of switchers, many pissed about being twice burned.
 
  • Like
Reactions: nikon1 and Avieshek
Comment

Abazigal

Contributor
Jul 18, 2011
14,697
13,776
Singapore
You realize Samsung can sell around 80 million smartphones a quarter, right? That's how they're in the #1 spot.

I don't see Google taking the #1 spot... ever.

The top 5 smartphone vendors last quarter were:

Samsung
Apple
Huawei
OPPO
Vivo

And in order to even be on that list... you have to sell at least 16 million phones.

Well... I'm having a tough time believing Google will ever sell 16 million phones in a quarter... let alone 80 million.

Even if Samsung's sales tank... there's still no way Google Pixel phones will sell in any kind of huge volume.

Yeah, by shipping tons of low end phones that bring them very little profit. Much of the profitability in their smartphone business comes from their high end phones (S-series, Note phones).

Which begs the question. How much closer to 100% can we push Apple's share of mobile profits for the year?
 
Comment

thekeyring

macrumors 68040
Jan 5, 2012
3,451
2,083
London
You realize Samsung can sell around 80 million smartphones a quarter, right? That's how they're in the #1 spot.

I don't see Google taking the #1 spot... ever.

The top 5 smartphone vendors last quarter were:

Samsung
Apple
Huawei
OPPO
Vivo

And in order to even be on that list... you have to sell at least 16 million phones.

Well... I'm having a tough time believing Google will ever sell 16 million phones in a quarter... let alone 80 million.

Even if Samsung's sales tank... there's still no way Google Pixel phones will sell in any kind of huge volume.

Sorry, I should have been clearer. I wonder if the Pixel will replace the Galaxy phone as premium handset choice for Android. Samsung might still outsell Google, as they do Apple, but using low- and mid- cost handsets to make up the difference.
 
Comment

Michael Scrip

macrumors 603
Mar 4, 2011
6,390
8,445
NC
Yeah, by shipping tons of low end phones that bring them very little profit. Much of the profitability in their smartphone business comes from their high end phones (S-series, Note phones).

Which begs the question. How much closer to 100% can we push Apple's share of mobile profits for the year?

While I agree... the comment wasn't about profit.

It was about an OEM being the #1 spot.

EDIT... and he clarified it above.
 
Comment

Solomani

macrumors 601
Sep 25, 2012
4,152
9,035
Slapfish, North Carolina
Nice bait thread title. Couldn't leave it at Apple's finances, had to throw Samsung's name in there. How many added clicks did that net you?

In a month where Apple's dying Mac lineup was supposed to be revamped, MacRumors has gotten to the bottom of the story... By posting article after article of incremental beta updates as front-page news. Well done.

I guess I'm missing the big picture. I visit websites like this because Apple products interest me. But all I get from this site now are shareholder results and software developer ads. Thanks.

It's click-bait revenue for MR. It's standard operating procedure here. No one is forcing you to read articles on this website.
 
Comment

Michael Scrip

macrumors 603
Mar 4, 2011
6,390
8,445
NC
Sorry, I should have been clearer. I wonder if the Pixel will replace the Galaxy phone as premium handset choice for Android. Samsung might still outsell Google, as they do Apple, but using low- and mid- cost handsets to make up the difference.

Ah... that makes more sense... thank you.

:)
 
Comment
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.