Samsung now has to spend considerable time and resources to rebuild consumer confidence in the Galaxy Note 7 as it starts resuming sales of the handset across the globe. China was least affected by the recall yet the country's state broadcaster slammed Samsung for the way it handled the recall in the People's Republic. Samsung is already facing tremendous competition in that market from local manufacturers and the Galaxy Note 7 recall has not contributed to its fortunes. The recall is actually hurting demand for other Samsung handsets in China.
According to a new report, sales of Samsung handsets have declined by as much as 30 percent at one retailer in Hong Kong, including the Galaxy S7 edge which was perhaps its best selling handset this year. Other retailers have reported a decline of up to 80 percent as customers have been spooked by the media hype surrounding the recall. Analysts have already expressed concern that Samsung may continue to bleed market share in China as the Galaxy Note 7 will only exacerbate its problems in one of the most lucrative smartphone markets on the planet.
The true financial impact of the Galaxy Note 7 will only be visible when Samsung reveals its earnings guidance for the third quarter of this year. Some analysts still expect the company to post a slight improvement in quarterly operating profit though the increase will mainly be attributed to Samsung's display and chip businesses.
