It’s official, Samsung’s Galaxy Note 7 is hot property; but for all the wrong reasons. The global technology brand’s newest smartphone line is burned at the stake after production has ceased completely – and now we know why. The problem stems from faulty battery cells, which were rapidly overheating and in some cases catching fire leading to violent explosions. In a desperate effort to minimise risks to the consumer and save face, Samsung issued a patch which stopped the phone charging above 60%, whilst issuing a full product recall urging everybody to return their Note 7 for a full refund.
In the end, there was a total of 96 devices that were affected. This might not sound like much but due to the severity of the incidents Samsung had to recall the whole product line. 13 people suffered from burns and other injuries, while 47 people faced damage to their personal property.
Astonishingly, 90% of US customers have reportedly opted for an alternative replacement rather than a refund, so Samsung could still have a promising, inferno-free future.
Strategically timed in an attempt to claw back smartphone market share the technology behemoth tried to pre-empt Apple by launching their latest smartphone about a month ahead of the latest iPhone 7. Did this sprint to the finish line force Samsung to cut corners during product testing?
So what do the numbers say?
A $17 billion loss in revenue with 2.5 million handsets recalled globally? For many companies that would sound like game over. In actual fact, this is a small fraction of the total 310 million smartphones Samsung is expected to ship this year, according to analysts.
There is a large potential that Samsung’s brand-reputation might have been damaged. This would mean that future Samsung users might switch to other brands such as Apple or the new Google Pixel for their next phone. Samsung will have to do a lot to win back customer’s trust. Only time will reveal the full impact.
Take a look at the infographic below to see the full breakdown of the fiasco!
Samsung Galaxy Note 7 Disaster
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