As expected, Samsung’s numbers are really going down. The company isn’t just losing billions of dollars but it’s also losing its fans and the trust of the industry. We’re not sure how and well Samsung will be able to recover from the Note 7 fiasco but certainly, some of its businesses are still keeping it afloat. We’re now in the last quarter of the year and the company has recently reported its operating profits–down by 30% from the previous year at only 5.2tn won which is about $4.6 Billion dollars.
The past two months have been difficult for the tech giant but it’s determined to do better next time that it’s already prepping for the Galaxy S8. As a different marketing strategy, it’s believed to be launching only one premium flagship annually. Some other changes within the company include heir apparent Lee Jae-yong becoming part of the board. This decision has the support of the shareholders so we’re hoping that something good will come out of it.
However, not everyone is happy with the move. Some people have been saying that Lee hasn’t held any major position at the company yet that being part of the board is questionable.
Samsung has already lost the confidence of the consumers and other members of the mobile industry. The Note 7 was recalled and then production was totally cancelled. It tried to offer replacements through an exchange program but more problems and complaints were reported. Samsung first thought that it was the battery so they changed suppliers. The same issues were reported even after a new battery supplier came into the picture.
This is one painful problem not only for Samsung but for industry watchers and analysts who’ve always believed in the brand. Samsung’s chance to sell millions of units and billions of dollars are now gone as noted by ABI Research’s Jake Saunders. We’re interested to know how and when the South Korean tech giant will survive. We know it will and it can but it’s only a matter of time.