[THE INVESTOR] Chinese handset makers, including top three Huawei, Vivo and Oppo, are expected to snatch the demand for Samsung Electronics’ now suspended Note 7 smartphone, according to a recent report of a market research firm.

TrendForce estimated that Samsung has produced about 4 million units of the bigger-screen phone since the device went on sale in August. The original production volume forecast for the entire 2016 was between 10 to 12 million units.

The firm added that chances of reworking the already assembled Note 7 phone are very slim and these 4 million units are likely to end up being scrapped by Samsung. 


A substantial portion of consumers’ demand for bigger-screen phones will go to three major Chinese brands -- Huawei, Vivo and Oppo, while Apple’s iPhone 7 Plus, released in September, is also expected to benefit from the key rival’s withdrawal from the market.

Now much of the attention is on the strategic adjustments that Samsung is making to its smartphone business. To make up for the shipment losses, TrendForce said Samsung is expected to shift its marketing resources and promotional efforts for other Galaxy smartphone series, including Galaxy S7.

In the long run, the firm said, the fallout from the Note 7 crisis will have a significant impact on Samsung’s overall bottom line. To stay profitable, the company may increase the price of its memory and panel components, which have a dominant market share worldwide.

By Lee Ji-yoon (jylee@heraldcorp.com)