It has been a while since Samsung released the Note 7 with the goal of taking down Apple and dominating the phone market. Well, it backfired and literally blew up the market. All around the world, Galaxy Note 7 phones have been recalled and urged to be turned off and have their batteries pulled. However, even this is not stopping Samsung customers to dump their Note 7 phones and switching to competitors.
In an article by the NY Times, Samsung did a mass recall to seize as many of the explosive handsets as possible and get Samsung engineers to figure out what had gone wrong. Even though it is the battery that kept malfunctioning, new batteries in the phone yielded similar results.
Samsung initially recalled the phone in September in the hope of switching out the batteries but with the engineers and testers lacking the time to find the root cause, Samsung has decided to scrap the Galaxy Note 7 line altogether.
“For the benefit of consumers’ safety, we stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production.” said a Samsung spokesperson.
This turn of events has been devastating for Samsung with $17 billion of its company market value lost in weeks, tarnished brand and pulling products out of a competitive market, this might prove to be lethal to the technology giant.
The tarnished brand has left many people skeptical of Samsung’s ability to outsource its parts and the NY Times reported that the company could potentially lose more than $10 billion in consumer phone troubles.
Chairman of the safety commission, Elliot F. Kaye:
The fact that we are dealing with potentially a second recall on top of a first recall is not your normal situation and indicative of a less-than-ideal process that should have involved earlier coordination with the government,
With Google now releasing its Pixel, Samsung might have lost its dominating position as the most popular Android phone and a losing to Apple and competitors but will the Google Pixel redeem Android’s damaged reputation?
Source: NY Times