In what was the worst quarter for Samsung Mobiles in the last two years, the tech giant has experienced a decrease of 96% in operating profits in Q3 2016, as compared to Q3 2015. It doesn't take a genius to guess that the recalling (twice) of the Galaxy Note 7 and its subsequent discontinuation due to mysterious hazardous threats that it posed to the customers are the main culprits behind such a disastrous financial quarter. That being said, Samsung is still the number one smartphone manufacturer in the world and significantly ahead of Apple, with a market share of twenty percent in the quarter!
According to Melissa Chau of IDC, "Samsung's market dominance in the third quarter was unchallenged in the short term even with this high-profile Galaxy Note 7 recall, but the longer term impact on the Samsung brand remains to be seen."
"If the first recall was a stumble for Samsung, the second recall of replacement devices face-planted the Note series. In a market that is otherwise maturing, Christmas has come early for vendors looking to capitalize with large-screened flagship alternatives like the Apple iPhone 7 Plus and Google Pixel."
According to IDC, 72 million of the 363 million smartphones sold in this quarter were manufactured by Samsung. The report from Strategy Analytics differs slightly (75 million out of 375 million handsets sold) but still clearly depicts the strong presence of Samsung in the global smartphone business, in spite of the embarrassing episode with the Galaxy Note 7.
Saikat Kar (tech-enthusiast)