Analyst: Samsung may have to kill off NOTE line going into the future.
http://time.com/4487124/samsung-shares- ... -7-recall/
Samsung Electronics’ common shares were down 6.3 percent to $1,329.73 each after touching their lowest level since July 12, and were on track for their biggest daily percentage drop in more than four years.
Analysts said the recall could torpedo Galaxy Note 7 sales and have a lasting impact on the $211 billion company’s brand image, which could derail a recovery in its smartphone market share against rivals like Apple Inc.
“Even if Samsung puts Note 7s with new batteries in the market it won’t sell as well as it had initially,” HMC Investment analyst Greg Roh said.
“Long-term, it will cost Samsung significant marketing spending to ensure the next products can overcome this issue.”
Samsung Electronics’ common shares were down 6.3 percent to $1,329.73 each after touching their lowest level since July 12, and were on track for their biggest daily percentage drop in more than four years.
Analysts said the recall could torpedo Galaxy Note 7 sales and have a lasting impact on the $211 billion company’s brand image, which could derail a recovery in its smartphone market share against rivals like Apple Inc.
“Even if Samsung puts Note 7s with new batteries in the market it won’t sell as well as it had initially,” HMC Investment analyst Greg Roh said.
“Long-term, it will cost Samsung significant marketing spending to ensure the next products can overcome this issue.”