Samsung's Equity Still Effected By Galaxy Note 7 Issue

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With all of the success that Samsung is seeing with its Galaxy S8 sales, it seems that the company has finally recovered from the Galaxy Note 7 issue that happened last year, but the company's still being impacted by it at the stock market. Issues with Samsung's phablet from last year didn't just affect Samsung's mobile department, but the company as a whole. Having to recall the Galaxy Note 7 units likely cost Samsung quite a bit of money and cut the company's income by a significant amount. It wasn't clear how much the Galaxy Note 7 issues affected the company but a recent study seems to shed some more light on the situation.

The equity of Samsung's mobile division has reportedly seen some decline, but there looks to be more to it than that. The Galaxy Note 7 issues affected a few of the company's other divisions. The equity of Samsung's smartphone division has seen the largest decline, dropping 5.4 points in the market compared to 2016. Of all divisions, the smartphone division has seen the largest decline. The sales of the Galaxy S8, and the potential sales of the Galaxy Note 8, will likely aid in fixing that. Samsung's tablet division has also been declining and the Galaxy Note 7 only added to it with a 2.4 percent drop. Samsung's smartwatch division saw a slightly larger drop, decreasing by 3.3 percent in the market. These declines aided in dropping the equity of Samsung as a whole almost three points according to the data from the study. This shows how largely Samsung's smartphone division affects the company. Not only that, but the Galaxy Note 7 recall created a vulnerability for Samsung which Apple exploited. In the wake of the problems with the phone, iPhone sales saw a notable boost due to many people discarding their Galaxy devices.

Though this scenario seems like a bad situation, Samsung is still seeing success in its other divisions. The company still manufactures chips, displays, home appliances and other products. Additionally, Samsung still managed to retain its leading position in the smartphone market last year. Samsung is a large company and it's one of the most valuable businesses globally. The rapid sales of the Galaxy S8 and Galaxy S8+ shows that Samsung can definitely recover and continue its dominance in the smartphone market.

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