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Things just keep getting worse for Samsung

Published Oct 19th, 2016 8:01AM EDT
Samsung Note 7 Recall Lawsuit

Samsung is still in the early days of an ordeal that will take months, if not years to full work past. The company was forced to recall its flagship Galaxy Note 7 phablet after some devices caught fire while charging, and then some of the “safe” replacement phones it swapped out for the original models began to burst while they were being used. Samsung had no choice but to discontinue the phone and recall all handsets old or new, and now the company is in the midst of a public relations and public safety nightmare. But that’s not all.

Just one day after the first of what will certainly end up being several Galaxy Note 7-related lawsuits was filed against Samsung in the state of New Jersey, news is now circulating that the company may have just lost some big business due to its current debacle.

DON’T MISS: Samsung allegedly tried to bribe a man to keep his exploding Note 7 a secret

A class action lawsuit was filed on Tuesday in the state of New Jersey by three plaintiffs who claim to have suffered “economic injuries” due to Samsung’s mishandling of the Galaxy Note 7 recall. The suit is undoubtedly the first of several we’ll see filed around in the coming weeks and months, but lawsuits aren’t the only potential financial hit Samsung has to worry about — in addition to direct costs related to the Note 7 discontinuation and recall, of course.

Digitimes on Wednesday relayed a report from Chinese newspaper Economic Daily News, which stated that Samsung is about to lose a major contract due to delays. Samsung’s chip division was contracted to build next-generation Snapdragon 830 chipsets for Qualcomm, the report says, but the company has fallen behind schedule and has not yet delivered any qualified samples to Android devices makers. As a result, the paper says Samsung will likely lose follow-up orders to the world’s largest chip fab, Taiwan Semiconductor Manufacturing Company (TSMC).

The report claims that a number of top Android phone and tablet makers could see a negative sales impact in the first quarter next year as a result of potential delays.

Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.