Market Contraction Significant Market Contraction Likely to Follow Galaxy Note 7 Recall

It is predicted that the recall of the Galaxy Note 7 will cast a damper on the global smartphone market in the latter half of this year. A number of customers were previously expected to veer towards the iPhone 7 after the explosions of the batteries of the Samsung Electronics handset, but it is now said that the iPhone 7 lacks innovation.

Samsung Electronics is planning to initiate the recall procedure in South Korea on September 19 and abroad in the near future.

Under the circumstances, an increasing number of experts are saying that the recall is rather unlikely to lead to more profits on the part of the iPhone 7 for the reason mentioned above. According to them, the global smartphone market is forecast to be contracted to a significant extent with an alternative to the Galaxy Note 7 nowhere to be found.

Samsung Electronics has expanded its recommendation not to use the Galaxy Note 7 to 10 countries, including South Korea and the United States. The 10 countries do not include China, where the product was released on the first day of this month, because the batteries of the products for sale in the Chinese market are not problematic. At present, Samsung Electronics is exchanging the product in those countries.

http://www.businesskorea.co.kr/