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

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Comments

  • Reply 41 of 54
    LOL. I knew it was going to be a huge amount, even though the sales are relatively small in number.
    watto_cobra
  • Reply 42 of 54
    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.
    It wouldn't benefit them to declare "look at us, we're HUGE LOSERS". Perhaps they would increase the claimed losses for some kind of tax write off benefit?
    watto_cobra
  • Reply 43 of 54
    calicali Posts: 3,494member
    wood1208 said:
    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"
     He was mocking a Samsung-paid article that claimed the Note 7s exploded because Samesung packed too much innovation in them.  lol

    I hate how better specs and bigger batteries are called "innovation" now.
    watto_cobra
  • Reply 44 of 54
    evilutionevilution Posts: 1,399member
    Less than 100 actual reported cases out of about 1 million phones sold. That's the sort of over reaction I expected from the media about an Apple product problem. Usually Samsung and Android problems are ignored so it's nice to see them taking a hit for once.
    watto_cobracanadiandude
  • Reply 45 of 54
    satchmosatchmo Posts: 2,699member
    Frankly, can people tell the difference between a Note 7, Galaxy S7 or S7 Edge?
    Too many products lines, IMO. 

    watto_cobracanadiandude
  • Reply 46 of 54
    netmagenetmage Posts: 314member
    wood1208 said:
    Come-on. Shipment with box/gloves doesn't add significant to 5.3B.
     I saw an estimate that the return packaging will be 1B dollars - I think 20% is pretty significant. 
    watto_cobra
  • Reply 47 of 54
    netmagenetmage Posts: 314member
    evilution said:
    Less than 100 actual reported cases out of about 1 million phones sold. 
    Samsung had 96 reports in the US alone in the first month of sales. That doesn't count the rest of the world, or how many it will be after more time. A run rate estimate is more like 1 in 1000, which deserves a serious reaction.

    Or do you think Samsung spending billions to recall a phone twice indicates business as usual?
    watto_cobra
  • Reply 48 of 54
    SoliSoli Posts: 10,038member
    netmage said:
    wood1208 said:
    Come-on. Shipment with box/gloves doesn't add significant to 5.3B.
     I saw an estimate that the return packaging will be 1B dollars - I think 20% is pretty significant. 
    I read that there are over 1M Note 7's stll in the wild and in use since the recall. Let's push that to 2M just to be safe.

    $1,000,000,000 ÷ 2,000,000 = $500 for the cost of the box, the gloves, and shipping to you and then back to Samsung. The only way I could see more than $100 is if it's the fastest possible shipping, or if Samsung had to buy special holding centers and shipping containers because of their combustable shipment. I don't see $500+ to each device still out there.
  • Reply 49 of 54
    foggyhillfoggyhill Posts: 4,767member
    evilution said:
    Less than 100 actual reported cases out of about 1 million phones sold. That's the sort of over reaction I expected from the media about an Apple product problem. Usually Samsung and Android problems are ignored so it's nice to see them taking a hit for once.
    100 case in a few week for problem that probably gets worse because it's seemingly a design issue and can lead to catastrophic results is not a minor thing
    if they sold 20m and the rate stayed the same you got 2000 fires.per month, 36000+ over its whole sell cycle
    if rate increased because the battery got old the numbers could be much higher
    no product being such a fire risk is allowed to be sold perod
    watto_cobra
  • Reply 50 of 54
    macxpress said:
    The $5.3 billion is just the tip of the iceberg....its nothing compared to the tarnished reputation its received from this. 
    Or potential upcoming lawsuits…
    watto_cobracanadiandude
  • Reply 51 of 54
    May be there is fairness in the world
  • Reply 52 of 54
    Now the world knows why the iPhone doesn't have a "rapid charging" circuit.
  • Reply 53 of 54
    maestro64maestro64 Posts: 5,043member
    rob53 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.
    If Samsung is actually recalling all the Galaxy 7's, they might have included all operational costs associated with the device, including all specialized manufacturing equipment and maybe even design work (should be a very small amount). Add in the component costs, even those from other Samsung divisions, and they could easily have a loss in the $5B range. I don't see these as actual profits but the way accountants fiddle with the numbers, maybe Samsung gets to take everything off as if they were going to be profits. Kind of like Trumpconomics. 

    you know they could, but they have no idea what those costs are going to be, it takes months to figure all that out. Samsung is not doing any sort of business analysis here, they just through everything including the kitchen sink as a cost verse waiting until the know the cost. As I said I have seen this done from the inside, when something bad like this happens all the finance people run around and gather up all the holding account for bad expenses and write them all off in one quarter so you take in once verses many times over the period of time.
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