In case you missed it, Samsung’s Note 7 has been literally burning a hole in their customers pocket. In an unprecedented disaster for Samsung, their “battery issues” of the last few weeks have led to the complete stoppage of production on their new Galaxy Note 7. For more than a month Samsung has tried to repair the issue of the device spontaneously catching fire, however after replacement phones also began to smolder the decision was made to end the line completely.
With over six million phones sold, this may be the most costly blunder in cell phone history clocking in at over 2.1 billion dollars in lost profit so far. Not since Nokia’s famous replacement battery issue has a cell phone company’s blunder been so public. The Korean electronics company has issued a statement promising $100 in credit at “carrier or retail outlets” to customers who turn in their Note 7 for another Samsung phone. It’s a strategy that Samsung hopes will get Note 7 phones out of the hands of die hard fans, as well as keep wary fence sitters underneath the umbrella of Samsung.
Samsung then issued a worldwide recall on their Note 7 phones. The media company is desperate to get defective devices out of the hands of their users, going so far as sending user push notifications and alerting them when they reset their phones. After this, and in the midst of their recall, Samsung stopped production of their Note 7 phones to investigate the issue Shortly after the release of these new phones, more reports started to surface that the new devices also caught fire. Finally, Samsung was forced to end the line completely.
Samsung has received almost 100 reports of phones overheating in the US, with 13 resulting in burns and 47 in serious property damage. The real damage obviously, is not to the fortune 500 companies’ wallet, it’s to Samsung’s brand and level of trust with its consumers. The Galaxy Note 7 was designed to be the technology that put the final nail in the coffin of which brand was superior, Apple or Samsung. Now, Apple’s stock is soaring and Samsung’s flagship product is DOA. With Samsung not posed to release a new phone for months to come and coming off the release of the iPhone 7, Samsung needs to scramble and find a solution quickly.
It’s unclear what the future of Samsung is at the moment, while still a technology giant making other model phones as well as TV’s and computers, their reputation has taken a massive hit. The roll out of the iPhone 7 and with Google releasing the trailer for their new phone Pixel, it will be interesting to see how Samsung fairs in the mobile phone market from here on out. Will Samsung weather this storm? Almost certainly, but the question remains “where will they go from here”?