After fending various competitors, especially in China, Samsung was “heart-broken” at having to recall nearly 2.5 million Note 7’s from around 10 countries due to the numerous reports of its lithium-ion batteries exploding or catching on fire while charging. The company is set to make a loss of $1 billion dollars, which was expected to account for 5% of Samsung’s ($20.6 billion) revenue. Stock prices for Samsung plunged but has since relatively risen.
According to analysts the combusting battery news couldn’t have come at a worse time for Samsung since, Apple too, released its iPhone7 which has much anticipated features such as dual cameras that offer low light functionality and colour enhancements. It has also, traded its head phone jack for the new AirPods (Lightening EarPods) and has reintroduced the jet black option.
However, since Apple usually redesigns its phone every two years and has instead this time not made any substantial upgrades, consumers may feel let down. Additionally, it is widely agreed that it would be more enticing for Apple to come up with a new original name rather than continue to use numbers to distinguish between iPhone models. For Apple the iPhone contributes to most of its revenue and profits and since it is not as diversified as Samsung this is a major factor that plays into the fierce competition.