Samsung, the Korean tech-giant, states that it will exceed its profit estimates by over 4 billion won (3.6 million USD) and have a revenue of 49 trillion won (43 billion USD), despite the Note 7 calamity. The profits have grown 5.55% from last year’s numbers, but 4.18% lower than last quarter’s. The real question is, how are the Note 7 Explosions affecting these numbers?
The Note 7, in agreement with almost every tech company, have dubbed the device the best Android device of 2016. The new hardware features, S-Pen integration, software, and build quality have amazed us, reminding us yet again Samsung knows how to build a premium product. The battery explosions will, however, have an impact on Samsung. The Note 7 reintroduced by Samsung (apparently with a fixed battery), has some doubts, as reports of a Note 7 explosion on an airplane has emerged. The phone started smoking on a South West flight, leading to an evacuation of the plane.
The ironic part of this incident is: this phone was part of the replaced units that were supposed to be fixed and made completely safe. What does this mean for people who already own a Note 7? Return it! For now this remains a hazardous device, no matter how amazing the specs are, and has been banned in several public areas and airlines. Return your phone, get a replacement device (Samsung is offering a device from its J series), and wait until a completely hazard-free version of this phone is released.
We hope that Samsung will manage to eradicate this problem, or completely recall this phone. As of this moment, the CPSC has investigated 92 official reports of exploding Note 7’s. The Samsung Galaxy Note 8 might release earlier than we expect.
So far, the demand for new hardware from Samsung, such as SSDs, refrigerators, and air conditioning units are still strong. Many people need to be reminded that Samsung is simply not a phone manufacturing company. It is a mega-company whose influence reaches far beyond phones and tech devices, such as Apple or HTC. Samsung will continue to reap in profits, despite the Note 7 explosion
Written by Luke Choi