Galaxy Note 7 recall might seriously dent Samsung's business in China

Samsung is already facing a tough time in China with strong competitors like Apple in the high-end segment and local OEMs like Xiaomi and Huawei in the mid-range and low-end market segments. It may have been looking to improve its fortunes with the Galaxy Note 7 but now it risks seeing the opposite happen. Surveys conducted in China reveal that quite a few people say they will no longer buy Samsung smartphones following the Galaxy Note 7 recall. If that does turn out to be the case it would seriously dent Samsung's business in one of the most lucrative mobile markets.

In one survey 51.9 percent of the respondents in China said that they would not purchase a Samsung smartphone again due to the battery issues with its latest flagship. 37 percent of respondents said that they would buy an iPhone instead to replace their Samsung smartphone while others said they would go with local darling Huawei instead. Market analysts believe that the Galaxy Note 7 recall is going to result in a significant decline in Samsung China's market share and that's going to directly benefit the likes of Huawei, Apple and Xiaomi in mainland China.

It merits mentioning here that the Galaxy Note 7 recall has not affected customers in China as the units shipped to them had safe batteries from the get go. Only less than 2,000 units of the flagship were recalled in the country which were sent out as test devices prior to the actual release of the Galaxy Note 7 in China. However, it's true that the damage to Samsung's brand value is far greater than what the Galaxy Note 7 recall is going to cost it in dollar terms.

Adnan Farooqui - Executive Editor

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First Samsung device: SGH-E900

Adnan Farooqui is a long-term writer at SamMobile. Based in Pakistan, his interests include technology, finance, Swiss watches and Formula 1. His tendency to write long posts betrays his inclination to being a man of few words.

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