Samsung Galaxy Note 7 Recall: Majority owners to shift to Apple iPhone

Seoul, Oct 31: Apple appears to be the biggest gainer from the recent Samsung Galaxy Note 7 debacle, reveals a recent International Data Corporation (IDC) survey titled ‘US Smartphone Owners’ Reaction to Samsung Galaxy Note 7 Recall’. The report aimed to gauge the reaction of smartphine customers in the US to Galaxy Note 7’s recall.
IDC surveyed US consumers four days after Samsung decided to halt production of Note 7. The survey focused on three groups of consumers: current Samsung smartphone owners, past Samsung smartphone owners and smartphone owners who have never owned the Samsung brand.

As per the survey, half of the Note 7 owners polled said that they have or will choose an Apple iPhone to replace their recalled phone, while 17% said they would choose another Samsung. Most, however, said that they will return their phone through a carrier’s physical store.
In a recent report, KGI Securities analyst Ming-Chi Kuo too said that between 5 to 7 million Note 7 customers will end up buying an iPhone 7. KGI believes that it won’t take much to sway a disgruntled Note 7 owner to iOS. As per KGI report, many Note 7 users have lost faith in the Samsung brand and are likely to switch to Apple.

According to another report, Apple’s iPhone 7 is selling like hot cakes in Taiwan as both the 4.7-inch and the 5.5-inch models posted record numbers last month. As per a report in TaipeiTimes quoting industry sources, iPhone 7 was the best-selling smartphone in the country, and the exploding Galaxy Note 7 is one of the main reasons.
However, Note 7 recall doesn’t appear to be harming the broader Samsung brand so far. A majority of respondents said that the recall would not impact their future decisions to buy other Samsung products such as televisions and appliances. Survey participants’ view of Samsung’s response to the Note 7 recall was largely neutral to positive.

“The Note 7 recall along with all its repercussions, represents a significant event in the world of consumer electronics,” said Anthony Scarsella, research manager, mobile phones, IDC. “Although the recall may have an adverse impact on the brand in the short term, the truth is that Samsung remains the clear market leader in the worldwide smartphone market. Moving forward, Samsung will need to put the Note 7 to rest as quickly as possible and focus all efforts on producing a stellar Galaxy S8 come next spring. If successful, consumers will quickly forget the Note 7 fiasco if the upcoming S8 can deliver on all fronts.”
“As challenging as the Note 7 recall has been for Samsung, the data in this survey indicate that most consumers are unaffected by this, which should be good news for Samsung,” said Ramon T Llamas, research manager, wearables and mobile phones. “For the minority of Samsung customers who are unlikely to purchase a Samsung smartphone in the future, the company has to win back consumer trust. Thus far Samsung has offered monetary incentives but, at the heart of the matter, consumers want to learn the root causes of the problem and how Samsung intends to fix them.”

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