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Galaxy Note 7 fiasco may lead to a potential Rs 420 cr revenue hit this quarter for Samsung Electronics India

Samsung Electronics India Is Set To Take A Potential Revenue Hit Of About 420 Crore This Quarter Owing To Its Decision Of Discontinuing Its Flagship Galaxy Note 7 Phone After It Failed To Fix The Manufacturing Flaws That Was Causing The Device To Catch Fire.

News Nation Bureau | Edited By : Gautam Lalotra | Updated on: 13 Oct 2016, 10:28:38 AM
Samsung - File Photo (Getty)

New Delhi:

Indian electronic major Samsung Electronics India is set to take a potential revenue hit of about 420 crore this quarter owing to its decision of discontinuing its flagship Galaxy Note7 phone after it failed to fix the manufacturing flaws that was causing the device to catch fire.

The Galaxy 7 fiasco has made the Korean company revise its production estimates for the quarter. The company shall now sell around 70,000 units of Note 7 during the quarter as against the initial target of a lakh units to its India sales team to counter Apple’s new iPhones, said two people aware of the development.

The Indian team has calculated and updated the potential revenue loss to its headquarters after taking stock of the demise of Note 7. 

Samsung India may also revive its earlier Note series flagship, Galaxy Note 5, later this quarter to salvage some of the losses and not leave the field entirely open for Apple’s iPhone7 or even the Google Pixel which is due to be launched later this week. 

Samsung had recently discontinued Note 5 model to focus on the Note 7, one of the persons said. Additional focus will be also given on the Galaxy S7 and S7 Edge models. When contacted, a Samsung India spokesperson declined to comment on the sales target. 

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First Published : 13 Oct 2016, 10:15:00 AM