Samsung Note 7 fires risk hurting demand for other products

SEOUL (Oct 5): Kong Tse has seen first-hand how the global uproar over flammable Samsung Note 7 smartphones is playing out with consumers. The 26-year-old, who hawks devices in the warrens of Hong Kong’s Wanchai Computer Center, says sales of the company’s handsets have tumbled 30% since the controversy began, including the high-end S7 Edge.

“Once betrayed, eight times avoided,” says the tousle-haired salesman, invoking a local saying while leaning against the counter in a tiny shop for Well Go Telecom. “They’ve lost a lot of trust.”

Kong’s experience suggests the debacle with Samsung Electronics Co.’s Note 7 battery fires may reverberate beyond a single product line and jeopardize a brand the South Korean company has spent billions to burnish. Investors will find out more about the fallout on Thursday, when Samsung reports earnings for the first time since the crisis began.

---

Related Stories

• Samsung gets first woman CEO outside founding family in 86 years
• Samsung makes rare apology after results sag despite AI boom
• Samsung to cut thousands of jobs amid struggles in AI market

---