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Samsung is suffering losses of $17 billion due to the ignition of smartphones

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Samsung is suffering losses of $17 billion due to the ignition of smartphones

Samsung is suffering losses of $17 billion due to the ignition of smartphones
October 11
16:00 2016

Samsung Electronics has lost about $ 17 billion due to the fact that the sales of Galaxy Note 7 have been suspended. The news agency Reuters reported about this.

In the early autumn Samsung withdrew 2.5 million gadgets due to the data that the phone batteries could ignite. On Tuesday Samsung announced that the sales had been stopped.  In addition, the company urged all the owners of Galaxy Note 7 to turn off their electronic gadgets, giving a promise to give a refund for the defective devices.

Reuters notes that Samsung will lose the income from the sales of approximately 19 million smartphones. This is equivalent to approximately $ 17 billion, which is significantly greater than the sum, which the experts mentioned. It was expected the company would lose $ 5 billion due to the suspended sales, provided that Samsung started selling Galaxy Note 7 in the IV quarter.

On the eve Yonhap, citing a source at Samsung, said that the company had suspended the production of gadgets for some time. Reuters has reported that if the company is obliged to stop selling the model of the smartphones completely, it may cause the cancellation of all stocks of manufactured devices.

Nomura reported in its analytical note: “We think that the incident with Galaxy Note 7 may damage the demand for other models of smartphones Samsung». Verizon Communications Inc, the largest wireless operator in the United States, is likely to abandon the faulty gadget ads. This speculation was made by a company’s representative. The publication says that most likely, it will increase the demand for competing products, such as the new Google Pixel and iPhone 7.

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