Home Business NewsBusiness Slash and burn: Samsung’s profits take a hit after Note 7 explosion cases

Slash and burn: Samsung’s profits take a hit after Note 7 explosion cases

27th Oct 16 9:29 am

What will happen next for Samsung?

South Korean telecom giant Samsung has seen a 30 per cent decrease in profits after the Galaxy Note 7 was recalled following battery explosion cases.

Samsung stopped making the phones after many reports of the phone catching fire.

The reputation of the company took a huge hit on their quality and reliability after the recall of the long-awaited smartphone.

The nomination of Lee Jae-Yong, vice chairman of Samsung Electronics, took a major step towards controlling the family-run business and has been approved by many of Samsung’s shareholders.

Lee Chaiwon, the chief investment officer at Korea Value Asset Management Co told Bloomberg News: “We can now say that Lee’s regime has officially begun.”

“I think a new era is coming. The company will become more market-friendly,”

Samsung is to set to focus on more of their flagship devices over the coming months as the Galaxy Note 8 will not be released until next year.

Greg Roh, an analyst at HMC Investment Securities told the BBC: “Samsung has lost consumer confidence, but I think it still has at least one more chance. Rather than rushing to release the next product, it should conduct a thorough inspection and explain the results of its investigation into the Note 7,”

Earlier on in the week Samsung’s rival Apple announced a fall in sales and revenue for the first time since 2001.

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