Tech companies often like to believe that they can withstand anything, but, as in every area of life, the will of the people (no matter how unpopular and misguided) often prevails. When it does, tech companies stand to lose millions in the market. A new report says that the UK’s decisive vote in favor of departing from the European Union (EU) has Samsung considering the possibility of relocating its London headquarters to somewhere in Europe while leaving the UK altogether.
The Brexit vote saw 51.9% of voters opt in favor of leaving the united front, but British citizens will have to weather the storm for the next two years before their departure is official. Samsung once enjoyed 21% of all European mobile sales back in 2013, but that number has declined to 12.8% over a 3-year period. This decline in sales can be seen best in Samsung’s decision to shut down its camera and camcorder business in the UK as well as the Korean giant’s decision not to release the Galaxy Note 5 in Europe last year due to the presumed small desire for the device. The UK’s upcoming independent status means that the country no longer need abide by the laws of the EU — which means that it has the right to raise tariffs and stiffen importation prices against non-British companies. Korean tech companies like Samsung and yes, even fellow Seoul rival LG Electronics (as well as Acer), will take a hit when it comes to pricing because consumer confidence declines as prices rise.
With the UK EU departure, commonly known as Brexit, prices in the EU will increase because consumer confidence will take a hit (seeing Brexit in action doesn’t exactly spell confidence in the united establishment), and the Great British Pound’s drop in currency evaluation will likely lead to higher pricing for UK products as well (since, as an independent country, the UK will likely raise prices on foreign products in order to encourage local businesses and industries). Korean giant Samsung does not manufacture products in the UK, but the company does have its European headquarters based in London and, with prices going up, the company’s phone upgrade program and sales look uncertain going forward.
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