Samsung Galaxy Note 7 sales could decline in China after global recall fiasco

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Samsung Galaxy Note 7 has already caused Samsung huge costs owing to global recall because of faulty batteries and now it seems that the global recall fiasco is set to hurt the South Korean consumer electronics giant badly in one of the biggest markets in the world – China.

According to reports in the Chinese local media, as many as 51.9 per cent people have revealed that they are not going to buy Samsung smartphones (including Galaxy Note 7) because of the issues with batteries. Nearly 37 per cent of those surveyed said they would consider buying an iPhone to replace their Samsung smartphone, 26.3 per cent said they would purchase a Huawei handset as replacement. This means that other companies in the country including Oppo, Vivo, Xiaomi and Apple stand to benefit.

Samsung smartphone sales on the Chinese mainland “have been stagnant in the past few quarters” amid intense competition from major Chinese brands.

Read: Can Google Glass, Samsung Galaxy Note 7 be pegged as today’s tech failures?

IDC senior market analyst Tay Xiaohan believes that the global recall of the Note 7 will affect Samsung’s performance in the second quarter of 2016. The report pointed out that Galaxy Note 7 sales were underwhelming even before the issue of exploding batteries was reported.

“The Note 7 recall has convinced many of my clients to purchase the iPhone 7. Others preferred Huawei`s P9 when choosing a domestic high-end model,” a dealer was quoted as saying.

Tarun Pathak, a senior analyst at Counterpoint Research, said the Note 7 recall will hurt Samsung`s share in the premium segment, which makes up nearly a quarter of total smartphone sales in mainland China.

“The models likely to benefit would be Apple`s iPhone 7 Plus, Huawei`s Mate series or Oppo`s R series,” Pathak was quoted as saying.