We’re guessing that the recent Galaxy Note 7 issue will have a direct impact on Samsung’s many other businesses. Despite the recall and complete pull-out of the Note 7 production, the company’s numbers are still up mainly thanks to the components businesses. We just don’t know until when it will be able to keep the South Korean tech giant afloat.
When we noted the numbers last week, Samsung hasn’t halted production yet but analysts were already looking at a possible second recall. We thought then it would make things worse and true enough, a second recall wasn’t just announced. Samsung totally closed down production to ensure the safety of everyone. Recall then expanded and now includes recall of all original and replacement Note 7 units—globally.
Shipping and delivery of units are not allowed by some companies but Samsung already sent out Note 7 Return Kits complete with box and gloves. And then we found out Oculus also removed support for Note 7 on Gear VR. More businesses will be affected so expect slowing down of future projects from virtual reality to iris recognition, security, finance, cloud, and electric vehicles.
First to be directly affected is the Gear VR because it’s supposed to be compatible with the Galaxy Note 7. It’s the same with the Galaxy Gear S3. The two can still work with other Galaxy devices but chances of more units being used with the new VR and wearable devices have been reduced.
Other sections that may be affected include the bio and health business, iris recognition and cloud technologies. The Note 7 features that “Samsung Cloud” which by now, is on hold because of the death of the Galaxy Note phone. It’s the same with the improvements in Knox and the introduction of the security folder. The iris recognition can also applied to the smart car technology but that may be affected as well.
Last but not the least, the sales of future premium phones like the upcoming Samsung Galaxy S8 may be affected. It’s a natural reaction that we’re guessing the same will happen to other Galaxy phones. Even the Galaxy S7 is also now receiving the negative effect but Samsung already said that the S7 phones are safe.
VIA: Business Korea
