Hardly a few days have passed since Samsung officially declared that it would bring the production of Samsung Galaxy Note 7 to a halt, and it has already created a buzz around the streets. Despite getting rave reviews upon its launch, the South Korean cellular giant, Samsung had to kill the Samsung Galaxy Note 7 just weeks after the phone went on sale due to numerous accidents like battery fires, overheating and exploding of the battery, as reported in several cases. Whatever the cause is, Samsung’s decision to scrap Galaxy Note 7 is for the best.
But now the question comes, how this whole episode would affect Samsung and the smartphone industry? Of course, the sale is likely to decline but apart from that, what is written in Samsung’s fate? Let us find out through this interesting article.
How will Samsung’s decision to squash Galaxy Note 7 affect the industry?
Samsung might lose its No.1 spot in the Indian market
According to Cyber- Media Research (CMR), Samsung had a 57% share in the Indian market while Apple had 32%. With this whole Galaxy Note 7 bombshell, Samsung’s sale in the Indian market is likely to reduce by 25%, as a result Samsung may lose its No.1 spot in the market and Apple may take its place.
The brand image of Samsung will be affected heavily
Samsung has become world’s one of the most trusted company for smartphones. Analysts state that Samsung sold around 77 million smartphones in the second quarter of 2016. With the whole battery fiasco, it will be very challenging to win back their customer’s trust and the brand image of Samsung is very likely to get affected up to a critical extent.
Likely offers on Galaxy S7 and S7 Edge
According to a report in the Economic Times, Samsung will not only compensate the consumers for Galaxy Note 7, but will also come up a number of offers on Galaxy S7 and S7 Edge to indemnify the losses. Now that’s a good news!
World war in the smartphone industry
The scrapping of Galaxy Note 7 has caused a lot of upheaval in the smartphones market. It has given other smartphone manufacturing companies a broader way to expand their business; especially Apple. Research firm TrendForce has forecasted that Apple’s shipment will rise from 3 million to 208 million, while Samsung’s shipments will demolish by 4 million.
Broader paths for Lenovo, Huawei and Google
Samsung has given Chinese smartphone makers like Lenovo and Huawei , who have been striving to expand themselves globally for the past years and could not do so because of Samsung and Apple’s dominance in the market, a golden and rarest of rare opportunity to sky-rocket their share in the smartphone market.
Additionally, we cannot forget the perks Google will bag due to the fiasco. Google has recently launched two new smartphones, Pixel and Pixel XL. Analysts predict that there is no questioning the fact that Google will benefit from Samsung’s decision. Scrapping of Note 7 will now prompt customers to give attention to the new Google phones.
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