Anyway, their stock is down 10% but I think that's silly; I don't think anyone who was considering a PTON is going to not, now. Maybe their earnings will take a hit, but does retail even care about that anymore?
Anyway, their stock is down 10% but I think that's silly; I don't think anyone who was considering a PTON is going to not, now. Maybe their earnings will take a hit, but does retail even care about that anymore?
https://www.ikea.com/us/en/customer-service/product-support/....
About 125,000 units at $4,000 each plus the overhead costs of dealing with the whole issue. So $500 million just on the recall, not to mention the liability on any suits for existing injuries and deaths, the brand damage, the delay before they can sell a new product, the loss of content subscriptions from people who no longer have a unit... Those subscriptions are really where they planned on making money.
It's a good chunk of change. It's on the order of a six months to a year of revenue. Any company that suddenly loses a year of revenue is going to see a big hit.