>> Samsung's profits estimates slashed by a third as the exploding Note 7 crisis rolls on. The company wiping more than $2 billion off its fourth quarter outlook in what could become one of the most expensive product safety failures in the history of tech. As Reuters' Robyn Mak reports, while Samsung shudders at the fallout, its Asian competitors are ready to swoop in and fill the void.
>> Samsung's Notes have been recalled, and decision to pull the device from the market is a huge and rare opportunity for lots of smartphone makers out there to move into the premium handset market. So this is the market for phones that cost over $600 US. Traditionally, this market has been completely dominated by Samsung and Apple, particularly in the US and in Europe.
>> For China's burgeoning smartphone makers, it's a rare chance to expand abroad. And out of all of them, two are eyeing up an especially large piece of the pie.>> Both Lenovo and Huawei already have premium products. So Huawei has Mate series. That's also a large screen. And Lenovo has Motorola's Moto Z phone.
Both phones can actually replace the Note 7. The second reason is that, and this is quite important, is that both companies all ready have established relationships with distributors and carriers across the US and Europe.>> Cracking foreign markets won't be a walk in the park. Lenovo's been struggling to turn its smartphone business around, and Huawei's been battling an image problem in the US over national security concerns.
But with 19 million Note 7s effectively out of the way, both companies know now is the time to strike. Meanwhile, Samsung's left cleaning up the Note 7 mess. Sending fireproof boxes out so people can safely return them. Sparking a whirlwind of mockery online, not to mention a logistical nightmare from couriers refusing to transport them.