Samsung Note 7 fiasco creates opportunity for others

It seems that Samsung has finally failed in resolving the battery issues of the Galaxy Note 7, even after the recall and replacements with safe batteries. On October 11, the Korean-based tech giant finally made an official announcement to scrap its Galaxy Note 7 flagship altogether, leaving its faithful customers looking for an alternative.

Rivals that automatically saw the Note 7 fiasco as an advantage are Apple’s iPhone 7 and Google’s new Pixel smartphones. But, Samsung has recently announces an offer either S7, or S7 Edge devices to compensate those who had per-booked the Galaxy Note 7.

Samsung Galaxy Note 7 was scheduled to go on sale in India from September 2; however the units could never make their way to the country since Samsung started the recall of almost 2.5 million devices following numerous incidents of the flagship Note catching fire.

Samsung tops the smartphone segment in India with around 25 per cent market share. Analysts estimate that the company may see some impact on its performance during its fourth quarter earnings after its decision to scrap Note 7 flagship entirely.

“There could be an impact on the premium segment during Q4 2016, but Samsung will look forward to drive S7 Edge as its premium flagship to attract the possible Note 7 upgraders or buyers. Though, tough competition from Apple iPhone 7 series, Google Pixel and Moto Z beckons in Q4 2016 to fill the gap left by Note 7,” said Tarun Pathak, a senior analyst from Counterpoint Technology Market Research.

He explained that most of the sales lost by Note 7 would be roughly distributed among Samsung, Apple and Android flagships in the following manner: 50 per cent Galaxy S7/Edge series, 35 per cent among iOS and approximately 15 per cent among Android flagships, including Google Pixel, Moto Z, and more.

“At the time of crisis, the best the company can do is to be as transparent as it can be, and riding on that, it can regain customer trust and confidence. It needs to inform users about the situation and what actually went wrong with the Note 7. Samsung is still 5 months away from its upcoming flagship (Galaxy S8), with a crucial festive and year ending season involved within. Hence there is a scope for one refreshed version (S7 edge plus) but eventually a lot will be depending on upcoming S8/S8 edge,” Pathak added.

How many customers will shift to Apple, Google and other smartphones depends on Samsung next move. Thus, it’s all in Samsung’s hands on how it would continue to maintain itself as India’s No.1 smartphone player.