- Title: Galaxy Note 7 fail opens door for rivals - analyst
- Date: 11th October 2016
- Summary: SEOUL, SOUTH KOREA (OCTOBER 11, 2016) (REUTERS) PEOPLE LOOKING AT MOBILE PHONES IN STORE SAMSUNG GALAXY NOTE 7 TURNED OFF NEXT TO NOTICE ABOUT SALE SUSPENSION OF SAMSUNG GALAXY NOTE 7 LETTER READING (Korean): 'SALE OF SAMSUNG NOTE 7 IS SUSPENDED' SAMSUNG GALAXY NOTE 7 TURNED OFF/ NOTICE ABOUT SALE SUSPENSION OF SAMSUNG GALAXY NOTE 7 VARIOUS OF GALAXY NOTE 7 NEW YORK, NEW YORK, UNITED STATES (OCTOBER 11, 2016) (REUTERS) (SOUNDBITE) (English) MANHATTAN VENTURE PARTNERS CHIEF ECONOMIST, MAX WOLFF, SAYING: "So, it's certainly a sad moment. Samsung, with the Galaxy series, the Note series, invented the phablet, which is the large-form factor smart phone, which has caught on like wildfire. Unfortunately for them, everyone makes them now, and everyone else is getting business that's leaving them. So, we have expected to see this company sell 12-15 million units at approximate price range above $650. We expect this to contribute billions and billions of dollars to quarterly profits, and we should remember that, as big as Samsung is, the mobile unit led by the Galaxy series of phones, the Note, and the regular Galaxy, really do account for a little bit over 50 percent of profit, a little bit over 50 percent of revenue. So this is a big wound to a big, powerful company, but a big wound, nonetheless, that will leave a scar."
- Embargoed: 26th October 2016 20:07
- Keywords: Samsung Electronics Galaxy Note 7 Apple iPhone Max Wolff Manhattan Venture Partners rebranding Apple HTC Huawei Lenovo
- Location: NEW YORK, NEW YORK, UNITED STATES AND SEOUL, SOUTH KOREA AND PARIS, FRANCE
- City: NEW YORK, NEW YORK, UNITED STATES AND SEOUL, SOUTH KOREA AND PARIS, FRANCE
- Country: USA
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA00153KALON
- Aspect Ratio: 16:9
- Story Text: Samsung killed its flagship smartphone Galaxy Note 7 on Tuesday (October 11) less than two months after its launch, dealing a huge blow to its reputation and outlook.
That leaves opportunity for rivals, said Max Wolff, chief economist at Manhattan Venture Partners.
"People are moving to the Plus series, the 7 S Plus, the 7 Plus, or the 6 S Plus," says Wolff, "And we're going to see HTC, and Huawei, and Lenovo pick up business. What it really means, people will fill this void, and it will hurt one of the most unique product areas for Samsung, which they invented, so we're gonna see lots of business move, and the question is, does it come back ever, and how quickly?"
As for Samsung, Wolff expects a rebrand when they do come back with a new offering.
The damage for investors has been dramatic. Nearly $20 billion of Samsung Electronics' market value was wiped out on Tuesday as shares posted their biggest daily percentage decline since 2008.
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