Samsung Note 7 Might Have A Global Recall After Defective Battery Issue, Expected To Greatly Decline Sales

Shortly after the debut of Samsung Galaxy Note 7 earlier this month, the Korean tech giant is planning a world-wide recall after several reports of a battery defect that caused device explosion while charging, which might cause a delayed shipment of units to its international distributors.

According to an interview by a Korean news website Yonhap to a Samsung official,  "The most important thing is the safety of our customers and we don't want to disappoint our loyal customers,".

The Samsung official further explained that the reported units with battery defect only accounts for only less than 0.1 percent however standard protocols should still be imposed that's why they are cooperating with their global partners and distributors to resolve the issue.

Samsung Electronics Co. also apologized to its consumers and said that the announcement about the results of their investigation will be made public this coming weekend and assured that the decision will consider the consumer's benefit.

As reported on CNBC News, this major delay caused a 2 percent stocks slide down in Samsung's stocks. Despite notable positive reviews for Galaxy Note 7, an equity analyst predicts that the consumer dissatisfaction will greatly impact Samsung Note 7's sales.

"More than 90 percent of customers will wait rather than switch to other phones because as a matter of fact, there are not many good options or alternatives in the market, because the Apple iPhone 7 will come out in late September, and other competing models are not as attractive," Daniel Kim, equity analyst at Macquarie.

Samsung is struggling with their sales because of a stiff competition in the Android market after the release of cheaper contenders mostly from Chinese manufacturers. Galaxy S7 and S7 Edge lifted smartphone division profits to 57 percent this  2^nd quarter compared to profits of the same quarter last year. However, after the expected recall and supply shortage issue, Samsung's goal to boost its profits this 3^rd and 4^th quarter of 2016 might not be realized after all.