Samsung India to pitch its other smartphones to damage control Galaxy Note7’s recall, quarterly results to take a hit

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Samsung’s Galaxy Note7 recall is the largest ever in consumer electronics in India and this is going to impact the company’s quarterly results adversely.

Samsung was expecting to sell nearly 70,000 units of Galaxy Note 7 during the quarter but now is likely to face a dent of around Rs 420 crore.

Globally also, Samsung has cut its operating profit guidance by 33% at $2.3 billion for the last three months.

As per reports, Samsung Note7 recall could end up costing up to $17billion.

Now, Samsung India is in damage control mode and will push other smartphones under Note flagship.

A Samsung India spokesperson told ET has a robust range of mobile phones across categories and the company is headed for record sales of handsets in India this year.

Samsung India may revive Galaxy Note 5, which was discontinued to focus on the Note 7. It may offer the Galaxy S7 Edge to the approximate 20,000 Note 7 pre-booked customers in India, or an option to return their money.

ET reported Samsung India was set to start manufacturing Note 7 in the country at the Noida plant.

Meanwhile, Samsung’s loss is going to be Apple’s gain and the iPhone maker has enough iPhone7 and iPhone 7Plus in the Indian market to meet the demand.

"Apple has ensured availability of sufficient stocks since it wants to make the most of Note 7's absence. In fact, iPhone supplies are still not steady in tier II and III cities, but Apple will now beef up stock there as well. Around 40% of the sales is that of iPhone 7 Plus compared with 15-20% earlier for the pricier variant,” CEO of a leading cellphone retail store told ET.
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