Samsung could however check its fall if it were to quickly come out with a successor to the Note 7, feels tech analysts.
Although Samsung’s S7 and S7 Edge enticed investors to toss their money into the pool, its recent dilemma has however got them worried. Samsung has also downwardly revised its mobile sales forecast.
The South Korean company has lost a whopping $26 billion of its market share since it announced the recall of its Galaxy Note 7, according to Factset, a financial data provider.
Its share prices have also dipped by 6.9% to $1,300, its lowest in months.
As more than 2.5 million handsets had already been shipped before it went about with its recall, analysts fear that many investors could question Samsung’s future in the mobile business.
In a move that many have prescribed to addressing these fears, Samsung had announced on Monday that its Vice Chairman, Jay Y. Lee will now officially take over his father’s role as the company’s CEO.
Samsung had hoped to ride on the crest of the sales of the S7 and S7 Edge and it is very likely that it would have met these expectations were it not for the battery issues surrounding the Note 7.
Samsung’s Note 7 have battery problems which causes them to overheat and explode. This has led it to issue a recall.
Currently there are more than 70 reported cases of Note 7 smartphones overheating in the U.S. alone. The U.S. government even stepped in and advised consumers to stop using the phone till they receive a safe replacement, which incidentally is scheduled to come out on September 19.
According to Rod Enderle, a tech analyst, since consumers have grown wary of the phone Samsung may announce a successor to the Note 7, in order to get back in the game.