In August, Samsung released their highly anticipated Galaxy Note7 smartphone. They quickly flew off the shelves and reviewers went mad. Then in just two short months, the Note7 died and Samsung has a pretty deep wound to heal.
In just two weeks, reports started to flood in that Note7 smartphones were smoking, catching fire, and exploding. This prompted Samsung to stop shipments and look into the issue. Samsung then realized they were going to have to replace all the Note7s they sold and issue a recall. While Samsung is in problem solving mode for this, the FAA urged passengers with a Note7 not to fly, or make sure the device is turned off while aboard an aircraft. This is just the start of the wound.
Samsung rolled out their replacement Note7s in September, but it seems as if they didn’t even fix the problem, because even the replacements would blow up. This shock came about when a replacement Note7 exploded on board a Southwest flight that was still at the gate.
This all prompted each carrier: Verizon, Sprint, AT&T, and T-Mobile to start offering exchanges and replacements. Even though this was Samsung’s problem it still had an affect on the carrier’s customers who didn’t have phones anymore. Eventually they all suspended sales of the Note7.
Samsung finally pulled the plug this week on the Note7 and cancelled the Note7 entirely. According to a Mashable article, Samsung was unable to actually identify and replicate the issue that was causing the Note7 to explode. This is probably why Samsung killed off the Note7, because if they can’t even identify the problem, they can’t solve the problem.
Here is a quick video from Fox Business discussing the Note7’s discontinuation:
If you’re a Samsung fan, this may make you angry or worried, but Samsung is offering you $100 to stay with Samsung devices, per New York Post.
If you’re Samsung, you should be angered and worried. This caused Samsung’s stock in KRX (Korean Exchange) to plummit, but as of Friday (10/14), it seems to rebounding.
It’s been a rough week for Samsung all around, that’s no doubt. Per Fox Businness, Samsung also cut their quarter 3 profit outlook due to the Note7 fiasco.
Well, Samsung may not be happy, but this sure makes companies like Apple, LG, HTC, and other competitors very happy. Consumers will more than likely leave Samsung for one of those companies, and Apple would probably be the go-to for most. If these companies really wanted to take advantage of this they’d promote and advertise against Samsung while still for their product(s).
On the flip side, Samsung needs to stitch this wound and heal. They already started that by offering customers $100 in credit no to switch from Samsung, but they need to do more. Samsung needs to promote their other phones, regular S7 and S7 Edge, and also discount them. Samsung should bring all carriers to the table to help them advertise and promote those devices and basically bury the Note7 for good.
Samsung is one of the biggest name in the mobile device industry, and electronics in general, and they need to handle this like a market leader would. Samsung makes great devices all around, they just had one of those backfires with a faulty product. Now not knowing why or how the Note7 did what it did to cause its failure isn’t the best thing for a company, but Samsung did the right thing by discontinuing the Note7.
Samsung needs to reassure shareholders and stakeholders, that Samsung is going to rebound and that the Note7 fiasco was just a bump in the road, and that their past it. Like stated above, their competitors are licking their chops at this, but I believe that will be short term, however Samsung;s big partner Google is really licking their chops.
Samsung mainly uses Android for their smartphones, and Android is created by Google, and Google just launched their own smartphones called Pixel. If Google plays their cards right, which they probably will, they’ll use this Note7 fiasco to really push their sales and make the case of Pixel. However Samsung may not like that, but I don’t think they can afford to say if, and, or but to Google. Although Samsung does have a mobile device operating system of their own called Tizen, but it has barely been rolled it out on their devices across the world.
Samsung should and shouldn’t be worried overall, they should be worried because this gives their competition and edge and it’s a let down for their stake and shareholders. They shouldn’t be worried because the issue was only limited to the Note7, and with their brand power, Samsung should have no problem rebounding and making up lost cash. Keep using your Samsung devices, and don’t be discouraged from staying with Samsung or buying Samsung devices.