On Tuesday, Samsung decided it would be best to halt the production of its latest flagship phablet, the Samsung Galaxy Note 7. However, ceasing production of such an important product in its catalog, will definitely impact the company, now and in the years to follow. While Samsung is expected to lose out on over $5 billion of profit the Galaxy Note 7 could have generated if the plug wasn't pulled on it, the company will likely be forced to slow its future projects.
It was reported that the Galaxy Note 7 fiasco will have a negative impact on Samsung's plan to expand its wearable business and the building of a foundation for new services based on the Galaxy Note 7. One wearble to take a hit is the new Samsung Gear VR, which was launched alongside the Galaxy Note 7. The Gear VR is compatible with the Galaxy Note 7, due to the USB Type C port located on it. Now, no other Samsung phone will be compatible with it. The Samsung Gear S3 which is also supposed to go on sale at the end of this month was supposed to be popular alongside the Galaxy Note 7. The bio and health business of Samsung is likely to suffer too with the demise of the Galaxy Note 7 as the device came with new health management functions. Smartphone industry analysts have also pointed out that Samsung may not solidify its position in the fintech market and cloud technology at the moment. Two features, "Samsung Cloud" and "Knox", which is a security solution, have both been put on hold.
"Samsung Pass" which was featured on the Galaxy Note 7, has also been put on hold. The feature made use of iris recognition to verify financial settlement and logins. Iris recognition technology is also applied to smart cars, and the technology can be expanded to the smart car sector. However, not all is bad as the company can now focus on functions of its smartphones to connect to new technologies and business. Wi Jung-hyun, a professor of strategic management at Chung-Ang University has said that the demise of the Galaxy Note 7 is more of a chance for the company, than a negative impact.