After a series of unfortunate events, Samsung finally announced on Tuesday to shut down the production and sale of the troublesome Galaxy Note 7.
The Korean phone company requested its Note 7 users to shut down their phones earlier this week. Sales were shut down and now after consideration Samsung has decided to give up on the production of the phone as well.
“We have decided to halt production and sales of the Galaxy Note 7 in order to consider our consumers’ safety first and foremost.”
Launched on 19 August, the large screen Android Smartphone received the praise and grandeur anticipated with its arrival.
But the éclat did not last long. Numerous cases of device malfunction and battery overheating were recorded. Note 7 was reported to heat up and burst into flames. 26 such cases of phones burning were observed in the US alone. 55 reported that the fire catching phone resulted in property damage as well.
A month after its launch, Note 7 users were prompted not to use their phones. The smartphone was recalled and after considerable hardware and software changes in the device, Samsung shipped the phone replacements to the customers to make it up to them.
Shipping of 2.5 million replacement phone caused inconvenience to customers, airlines, shipping companies, and the company manufacturers as well.
Regrettably, the replacement phones were no good at all. Reports of heating up and flaming smartphones came in soon, crushing the leftover decorum of Samsung.
Samsung suffered a gigantic brand damage. Stocks were reported to fall by 7% in Seoul, Korea.
Commenting on the market position of Samsung, Greg Roh of HMC Investment Securities said the incident had affected the customer relationship of Samsung.
“If it’s once, it could be taken as a mistake. But for Samsung, the same thing happened twice with the same model. The reason consumers prefer brands like Samsung and Apple is because of product reliability. So in this case, the brand damage is inevitable, and it will be costly for Samsung to turn that around again.”
He explained. Richard Windsor, from Edison Investment Research, also commented on the future trends in smartphone market saying that setback to Samsung doesn’t necessary mean a larger share for Apple.
“As a result of making a complete mess of the Galaxy Note 7 recall, Samsung is more likely to lose a large number of high-end users to other Android handsets rather than to Apple.”
This means that Samsung will be losing its power to other Android companies; especially Google, with its latest smartphone ‘Pixel’ with a display and high-end camera, comparable to iPhone 7.
Samsung just took a big hit in the market and it will take some time to do the damage control. Experts say that the company brand damage may mount up to $211 billion.
Galaxy Note 7 is completely shut down after attempts of recall and replacements. The replacements alone are estimated to cost $5 billion towards the revenue of the company.
Samsung is now offering Note 7 users to exchange their smartphones for another Samsung model.
- samsung-galaxy-note-7: extremetech