Samsung now projects $5.3B hit on profits from Note 7 fires

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Comments

  • Reply 21 of 54
    wood1208wood1208 Posts: 2,924member
    sog35 said:
    This is what happens when you have so much courage and pack some much innovation into a single device
    What so-much innovation ? I agree with you that Samsung has unique innovation put in their Note 7 called "unpredictable fire/Explosion"
    edited October 2016 caliwatto_cobra
  • Reply 22 of 54
    mwhitemwhite Posts: 287member
    macxpress said:
    The $5.3 billion is just the tip of the iceberg....its nothing compared to the tarnished reputation its received from this. 

    Also doesn't include lost sales. The Note 7 would have easily sold 20 million units over the next 9 months. That's $16 billion (give or take) of lost revenue. And since the Note 7 is a high margin device, that also equates to billions in actual profit.
    Not only that it doesn't take into account of all the Lawsuits that are going to happen.
    caliwatto_cobranetmage
  • Reply 23 of 54
    wood1208wood1208 Posts: 2,924member
    This $5.3B crying their loss is looking for public sympathy. It can't be that much other than Samsung wants to tell investor something worse and later come out with bit good news in earning call. All marketing gimmicks.Alligator's tears.
    edited October 2016 pscooter63caliwatto_cobra
  • Reply 24 of 54
    h2ph2p Posts: 335member
    cpsro said:

    ...Like the successful movie studios that never, ever have a hit production, they're probably attaching every possible expense to the Note 7. And the SK government will allow it because they want their prized behemoth to survive. 
    That's it -- SS will act like nothing significant happened. Act as though the SS Brand is fine... lookie-here at the new Note 8 or some sh*t.

    Even when Samsung Mobile's profits were off over 65% a few years ago -- Nothing significant happened... etc.
    caliwatto_cobra
  • Reply 25 of 54
    ronmgronmg Posts: 163member
    maestro64 said:
    I do not believe this number, I think Samsung is jacking up the number. They are trying to send a signal to the market that demand for the galaxy 7 is higher than reality. I also believe the rolling up other costs and loses they have and using the opportunity to expense them all at the same time so it does not look bad they have other issues. I have seen companies do this exact thing in the past.
    Hmm, just the fact that they have to purchase and ship (with postage paid both ways) fireproof gloves and fireproof packaging to those who bought Note 7s directly from Samdung adds a pretty penny to the cost they have to pay!!

    caliwatto_cobranetmage
  • Reply 26 of 54
    wood1208wood1208 Posts: 2,924member
    ronmg said:
    maestro64 said:
    I do not believe this number, I think Samsung is jacking up the number. They are trying to send a signal to the market that demand for the galaxy 7 is higher than reality. I also believe the rolling up other costs and loses they have and using the opportunity to expense them all at the same time so it does not look bad they have other issues. I have seen companies do this exact thing in the past.
    Hmm, just the fact that they have to purchase and ship (with postage paid both ways) fireproof gloves and fireproof packaging to those who bought Note 7s directly from Samdung adds a pretty penny to the cost they have to pay!!

    Come-on. Shipment with box/gloves doesn't add significant to 5.3B. As someone commented, when bad thing happens in corporate world, they roll all bad news and expenses into one disaster/fiasco. Afterward, it looks like the slate is clean, Life goes on.People have short term memory.
    edited October 2016
  • Reply 27 of 54
    coolfactorcoolfactor Posts: 2,327member
    Where's pics of the "Galaxy Note 7 landfill"? That's what's so devastating, in my mind.... one-month old devices, tossed away. I hope Samsung is doing the right thing and recycling every part of them.
    watto_cobra
  • Reply 28 of 54
    razorpitrazorpit Posts: 1,796member
    ireland said:
    Don't forget the permanent hit to their brand. Don't buy a Samsung, they cut corners on safety to rush products to market. Only a fool would trust Samsung again. If you want an Android phone there are many options besides this bum outfit.
    Don't buy a washing machine from them either. We have one thats on the recall list for blowing up.

    Soli said:
    I like the fact that Apple is not publicly gloating the way Samsung would if the shoe were on the other foot. Sammy would feature exploding iPhones in their ads. Apple is showing real corporate class by just keeping on keeping on. Not that Samsung will learn anything from Apple's example. 

    She's good. Considering the Clintons have been living in the political gutters for decades I can't believe she was able to pull that "lecture" off with a straight face.
    cali
  • Reply 29 of 54
    "Less than half of its revenue comes from its mobile division" - maybe close to 100% of its losses though ...
    cali
  • Reply 30 of 54
    misamisa Posts: 827member
    ireland said:
    Don't forget the permanent hit to their brand. Don't buy a Samsung, they cut corners on safety to rush products to market. Only a fool would trust Samsung again. If you want an Android phone there are many options besides this bum outfit.
    Like what?

    LG is if anything worse than Samsung on a reliability thing. Samsung may not be perfect but I think we're giving too much credit to the build quality of "cheap" Android phones.

    There's been two times where Apple has produced a phone product that worked well, but then something creeped in (eg antenna attenuation in the iPhone 4, Touch disease in the 6), neither of these would have been caught in production, and neither are going to potentially kill someone.

    But I think the race for "lighter, thinner" needs to stop. This experience for Samsung tells us that it's way too dangerous to pack in batteries in thin phones because there is not enough thermal expansion space to use the device safely. It doesn't matter at this point if the battery was at fault or customers just abusing their phones and "fragments" of metal (like in the Sony batteries) are puncturing the cells of the battery.



  • Reply 31 of 54
    1: copy others designs
    2: add useless features
    2: rush products to market 
    3: disregard customer safety 
    4: blame the battery supplier 
    5: swap exploding phones with more exploding phones

    caliwatto_cobrastarwars
  • Reply 32 of 54
    Could someone please explain to me why their stock is still rising?  I mean this is a huge and lasting hit for them.  Am I missing something?
    cali
  • Reply 33 of 54
    jfc1138jfc1138 Posts: 3,090member
    Where's pics of the "Galaxy Note 7 landfill"? That's what's so devastating, in my mind.... one-month old devices, tossed away. I hope Samsung is doing the right thing and recycling every part of them.
    Recycling, and the strain on that system of these sorts of numbers, has been reported. Plus it's illegal in the U. S. to landfill those devices. And iirc they're being sent to a U. S. destination (Texas?)
    edited October 2016
  • Reply 34 of 54
    jungmarkjungmark Posts: 6,927member
    Where's pics of the "Galaxy Note 7 landfill"? That's what's so devastating, in my mind.... one-month old devices, tossed away. I hope Samsung is doing the right thing and recycling every part of them.
    I thought the world can't use land mines anymore. 
    caliwatto_cobra
  • Reply 35 of 54
    hexclockhexclock Posts: 1,305member
    macxpress said:
    The $5.3 billion is just the tip of the iceberg....its nothing compared to the tarnished reputation its received from this. 

    Also doesn't include lost sales. The Note 7 would have easily sold 20 million units over the next 9 months. That's $16 billion (give or take) of lost revenue. And since the Note 7 is a high margin device, that also equates to billions in actual profit.
    Also not included is the R&D costs incurred while designing the thing. 
    caliwatto_cobra
  • Reply 36 of 54
    fallenjtfallenjt Posts: 4,056member
    And finally, it's banned from US airlines.
    US Bans Samsung Galaxy Note 7 Phones From Planes http://www.nbcbayarea.com/news/tech/Samsung-Galaxy-Note-7-Phones-Banned-US-Air-Travel-397128291.html
    caliwatto_cobramacxpress
  • Reply 37 of 54
    SoliSoli Posts: 10,038member
    . . .
    sockrolidcalinolamacguywatto_cobra
  • Reply 38 of 54
    jfc1138jfc1138 Posts: 3,090member
    fallenjt said:
    And finally, it's banned from US airlines.
    US Bans Samsung Galaxy Note 7 Phones From Planes http://www.nbcbayarea.com/news/tech/Samsung-Galaxy-Note-7-Phones-Banned-US-Air-Travel-397128291.html
    Wow show up early as the X-ray lines grow ever longer as the screeners check the model f every phone they see on their monitor. 
    edited October 2016
  • Reply 39 of 54
    sockrolidsockrolid Posts: 2,789member




    caliwatto_cobra
  • Reply 40 of 54
    mobiusmobius Posts: 380member
    ronmg said:
    maestro64 said:
    I do not believe this number, I think Samsung is jacking up the number. They are trying to send a signal to the market that demand for the galaxy 7 is higher than reality. I also believe the rolling up other costs and loses they have and using the opportunity to expense them all at the same time so it does not look bad they have other issues. I have seen companies do this exact thing in the past.
    Hmm, just the fact that they have to purchase and ship (with postage paid both ways) fireproof gloves and fireproof packaging to those who bought Note 7s directly from Samdung adds a pretty penny to the cost they have to pay!!

    Just a tiny correction (not that anyone cares)...the gloves are to protect people's hands from the fibreglass inside the box which can cause skin problems with some people. They're not provided in case the phone suddenly catches fire while they are handling it. Although, it's far funnier to assume that's what they're for! lol
    watto_cobranetmage
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