Samsung note 7 is going to burn his market share..
Samsung said it had sold about 45,000 Note 7s through pre-orders in Europe. There have been no confirmed reports in the UK, where the handset was never fully released.
Samsung could suffer "a considerable loss of consumer faith," said Greg Roh at HMC Investment Securities.
"If it's once, it could be taken as a mistake. But for Samsung, the same thing happened twice with the same model," he said.
"The reason consumers prefer brands like Samsung and Apple is because of product reliability. So in this case, brand damage is inevitable and it will be costly for Samsung to turn that around again."
At least five fires were reported in replacement devices in the US.
Samsung said it had sold about 45,000+ Note 7s through pre-orders in Europe.
There have been no confirmed reports in the UK, where the handset was never fully released.
However, analysts are suggesting the recall and now scrapping of the Note 7 could cost Samsung in the long run, particularly coming just as rivals including Google and Apple have announced new high-end smartphones.
Richard Windsor, from Edison Investment Research, said: "As a result of making a complete mess of the Galaxy Note 7 recall, Samsung is more likely to lose a large number of high-end users to other Android handsets rather than to Apple.
"The real issue is brand and reputation. As long as Samsung carried out the recall smoothly and kept users very happy, the issue would eventually blow over.
"Unfortunately, this is very far from the case, and the fact that Samsung appeared to still be shipping defective devices could trigger a large loss of faith in Samsung products."
Courtesy by BBC News
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