512ke

A 33% cut in quarterly profit forecast is a big deal, even for a huge and diversified company like Samsung.

You can't accurately say, oh well they have all these other sources of profits. High end smart phones and tablets are a big deal for them -- hence the 33%.

I personally see another problem for Samsung: people who migrate from their products to a high end Google or Apple phone might not come back.

That's certainly been the case with Apple -- new users become habitual users generally (if not always).

In any event, Samsung's profits are affected by their smart phone sales. And the brand image of Samsung rises or falls with their flagship phones. Their investors care. The press certainly is devoting a ton of negative covering to Samsung. This is a big deal for Samsung, on the level of, get rid of management if the problem doesn't get fixed.

And for public safety it's huge as well -- 


What I don't get is, why is Samsung trying to downplay this, instead of getting those dangerous devices OUT of customers' hands BEFORE something truly terrible happens.

I certainly would NEVER wish a plane to crash but... if one does... that's the death of the brand Samsung. Of course that would be the LEAST important part of a  disaster compared to peoples' lives. From the company's point of view, it's a reason to take much more aggressive action to recall even the replacement devices!

sockrolid said:

Just saying that Wall Street knows that Samsung, the conglomerate, doesn't live and die over their smartphones.

I could be mistaken of course, but I believe the above statement is the exact opposite of the truth!

"The vast majority of Samsung's profits come from smart phones."

http://www.businessinsider.com/samsung-versus-xiaomi-2014-7

"Sarah Green of New Albany told The Courier-Journal of Louisville that her husband, Brian, was waiting to take off to Baltimore when his Galaxy Note 7 overheated. He called her from another person's phone a little after 9 a.m. to tell her what happened.

"He said he had just powered it down, when it made a popping noise and started smoking," Sarah Green said. "He took it out of his pocket and threw it on the ground."

Green said her husband's phone was a replacement Galaxy Note 7 after Samsung recalled the phone in mid-September because of "serious fire and burn hazards." They took the phone in about two weeks to a local AT&T Store to have it replaced."

It's not enough to require people to power down their Galaxy Note 7's! 

These dangerous devices have no place on commercial or private flights!

Apple is waiting and seeing. So Google had to go ahead and copy Samsung and Amazon. 

If i were either, I would be pissed that Android's creator and custodian wants to compete with their hardware.