Galaxy Note 7 debacle may hit Samsung’s shipments target by 14%, Revenues by 6,500 Cr

As per CMR’s impact analysis, Samsung’s Smartphone shipments target may fall short of 4 million units than its estimated shipments for the calendar year 2016, due to Galaxy Note7 battery issue that led to its recall and later halt of production worldwide.

This translates to Rs 6,457 Cr in terms of revenues for the company. As per projected growth, Samsung was expected to touch revenues of Rs 45,446 Cr in CY 2016, an increase of 46% compared to previous calendar year. However, following the Note 7 issue, it can earn revenues of Rs 38,989 Cr, which means a growth of 25% in revenues in CY 2016.

Samsung, however, will continue to maintain leadership in the Smartphone segment in India, but its market share will shrink by 4.2 percent points and settle at around 25.5% instead of estimated 29.7%.

Announcing the impact analysis, Faisal Kawoosa, Principal Analyst for Telecoms at CMR said, “Though Note7 is a high-end premium Smartphone, the impact would be on Samsung spanning all across the segments. The issue is faced with the flagship model of the year that too around festive season, as a result, customers’ confidence is shaken.”

“A perception, right or wrong, gets built within the market that if the issue is with the high-end premium model, there could be issues in the other models too,” Faisal added.