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Week 4 [24.10 - 30.10.2016] What a catastrophe - Samsung Note 7 scandal

Source: http://www.dailymail.co.uk/news/article-3770185/Samsung-considering-global-recall-Galaxy-Note-7-smartphone-battery-fire.html


Smartphone revolution of 21st century has completely and irreversibly changed the way people perceive the phone as a device and its functionality. Smartphones are omnipresent nowadays and are used by pretty much everybody to perform pretty much every activity using countless number of mobile apps, which make our everyday life easier or just more fun. The increased interest of customers in digitalizing every aspect of their lives has not escaped the attention of tech concerns, which are constantly doing their best trying to live up to customer’s expectations by making their products better-designed, more durable and just cooler. However, it looks like the race has recently become too tough for one of the leaders – Samsung, which had to completely recall from production their brand new smartphone– Galaxy Note 7, what will result in a spectacular financial loss and considerable image damage.

There are hundreds of complaints coming from all over the world reporting numerous cases of phones on fire or even actually exploding. Those messages can really make the consumers feel uncomfortable considering the fact how often a phone is held right next to our face and nobody wants to end up like Harvey Dent. The blame for the whole fuss is to be put on the lithium ion battery, which has a fault that leads to the phone overheating. It is commonly believed that the smartphone, and so the battery, were designed to thin.

It can be argued whether this mistake resulted from greed or it is just a matter of negligence, however, the consequences for Samsung are severe. The first thing worth mentioning here is of course money. It is estimated that the scandal will cost Samsung approximately £2 bn; yet, the calculations are still subject to change since the situation is extremely volatile. Reduced profits may not be the biggest worry though. From the PR and image point of view damages may be irreversible and may result not only in the reduced interest in Samsung’s smartphones but also in any other kind of electronic products, which have completely nothing to do with the scandal except from the common brand. Samsung is trying to make it up to their clients promising a free phone exchange. Also, it is providing customers with fireproof boxes to send their phones back in a 100% safe way, but to what extend can PR and marketing campaigns erase this affair out of people’s memory?

According to statistics, Samsung is a leader on the smartphone market with a market share amounting to 23%, followed by Apple with 13,4%. The numbers seem to give Samsung a safe advantage over competitors, however, let’s not forget how volatile and unstable this sector is and over years we have witnessed a failure of Nokia and Blackberry. Is Samsung going to join this circle? Let’s wait and see.

Here’s a video of Samsung Note 7 burning in Korea:
and aftermaths:

Feel free to comment and share your opinion on this topic.

Sources:


Comments

Unknown said…
Every complicated device is prone to failure. It just happens. Ofcourse the company is responsible for cleaning the mess they made. Basic engineering mistakes for example caused plane crashes. Hundreds of people died. You can't eliminate the risk but you can always improve.
Unknown said…
Yes, I agree with Aleksander. The more some device is complicated, the more it's possible to crush, break, or just stop working. But exploding or being on fire ? Now that's really disturbing and worrying. And dangerous! How can we live normally having on mind that we actually have a potential bomb in our pockets ? They should solve this problem as soon as possible and prevent from this kind of situations. They are - as a company - responsible for their product after all...
Dajana Kubica said…
I think that Samsung will not be the leader in few years. At the moment in the market we have so many choices that everybody will give up the use of Samsung. It is worth mentioning Lenovo or Huawei. I had many years the phone Samsung's, first model Galaxy s3, s4 later. After a few years of use, these phones made my life so difficult that I decided that I would never buy a Samsung phone. Now I use the Huawei Ascend G7 and I am very happy, after 2 years of use. I believe that Chinese brands may take a leading position, especially after exploding phones Samsung. Samsung needs to create innovative products to maintain its market position.
Unknown said…
While it's been quite a PR disaster for Samsung, I don't believe it's going to make them drop from their market position. The amount of faulty devices was relatively small, and nobody was seriously hurt by the accidents. Samsung will try to quiet down the issue with a new, better (not-exploding) device, and the war between them and Apple.
Funny thing is that since this fiasco someone made a modification for the GTA 5 game which replaced C4 explosive with the Galaxy Note 7. Recently Samsung have been trying to take down such videos.
Let's be honest. What we see is a complete Samsung "F" up. How it's even possible such big company didn't pay enough attention to the test stage of their product? It's not a single case when battery blew up. Samsung - shame on you!
Ihor Ahnianikov said…
According to recent news, Samsung has permanently ended the exchange program and production of the Galaxy Note 7 smartphone because of the similar incidents with the exchanged smartphones.

I think that this is a disaster for a leading tech company, they should give up on the Note brand entirely and save the most valuable asset - reputation.
Unknown said…
It is a disaster what happen to those phones. It may be dangerous. Can you imagine, little kid playing Fruit Ninja and then - bum! Trauma for whole life, scars on the body and inside, in psyche. I'm glad something like this never happen to me.
I stopped buying Samsung phones after Galaxy S3, mainly due to incompetence of the company in terms of hardware, software and documentation, so to be honest I'm not shocked that finally all of those very-well hidden problems finally blew up, literally...

I can't even find appropriate words to describe what I think about a company such as Samsung putting people's life at risk by not carefully testing their own product, but it's a fact that I don't like that company at all, so I wouldn't be objective telling how many things went wrong there.
Unknown said…
Łukasz, maybe a mini challenge? How about a short movie to express your opinion (with similar sense of humor to those from GRP :) )?

Ok, now let’s be serious. I fully agree with Łukasz. Samsung has made a phone which actually is a minibomb. It’s unbelievable how it could even happen? Where the test were? In my opinion there are a lot company like Samsung - they want to release their product fast to beat competitors, earn money faster. The key is that they are much smaller and not as well known as Samsung so scandals are not as effective. When it comes to our common safety, I am a bit afraid. When I travel to school, work by bus/underground sometimes I am wondering how many people around have Samsung phones.
I don't think it will affect Samsung in a huge way. Surely they will loose even more money on it, but I can't see how that would lead to their downfall as one of the most infuential smarthphone producers.

My friend works for Samsung now actually and has to answer many customer complaints, which I don't envy.
Piotr Basiński said…
It's a big problem for Samsung. They lost a lot by this unlucky designed device. We will see how they rise after this disaster in next two or three years. It can end good way, that everyone will forget, or bad way that no one will trust again and won't but Samsung phone.
Unknown said…
In my opinion this situation can be a big problem for Samsung. Competition in the smartphone market is huge and all companies in this sector are just waiting to mistake others. Of course Apple also they had a lot of mishaps but thier phones never explode at anyone's face! Knowing that something like that could happen is really scary. I'm not a fan of Samsung smartphones since mine broke down shortly after the warranty runs out :/
Unknown said…
I agree with you, guys.
Similar to Łukasz, I don't like Samsung. I don't know why. Normal prejudice.
But it's not important if I like or dislike Samsung if somebody's life is in danger.
We can't say anything more, because it is just scandal.

About week ago I read article about a boy whose arm was burned with this smartphone. It's terrible.
kondrat said…
The funny thing is that they were in the business for a while. Every their phone used Li-Po battery, so the technology isn't new. Maybe the whole story happened because of greed. Thinner phones, less space for battery to "breath" due to working in different temperatures, what caused this fatal issue.
Unknown said…
I think that it is a big mistake for samsung corporation. Maybe someone wanted to release it sooner than Iphone 7 and that led to catastrophe. Anyway I think that we can forget about Note for at least few months. Note 8 if will ever be release will have to be masterpiece of smartphone creation to regain trust of users.
As a app developer i always hated samsung. They do not respect standards in android API so when someone create weird issue we always know that this is probably bug samsung code. Maybe this incident improve their update support devices which are not flagship.
Unknown said…
I totally agree with you, Marcin here. Samsung really is not a great example to follow, in terms of sticking to an Android API standards.
I think that this coincidence should teach us about the potential danger of producing devices, which are not properly tested.
Kacper Zaremba said…
Amount of faulty devices wasn't so big, but they recalled all of them. That causes a huge loss, even for company as big as Samsung.
Kacper Zaremba said…
I have seen this mod, it's very funny!
Check it out - https://www.youtube.com/watch?v=_GhODn4FRoE
Kacper Zaremba said…
Imagine it happening when you are talking on the phone. Terrifying!
Kacper Zaremba said…
In my opinion greed is an obvious reason. They try to cut costs on everything to make bigger profits - this time they cut it on quality and safety control.
Kacper Zaremba said…
The worst thing is that the replacements of those phones also caught fire and exploded - so they probably haven't found the reason of it.
Kacper Zaremba said…
In my opinion financial losses won't be as bad as trust problems. I have read an opinion, that it may be even bigger catastrophe for brand image, than 'dieselgate' was for Volkswagen.
Kacper Zaremba said…
I think they may stop the Note series, and come up with some new name for it. That may help handling problems with negative brand image.
Maybe it's just a mistake made at prototyping stage.
I've naver had one of the Samsung smartphones, simply because I don't like the design of them and this company itself. However, it is not only Samsung's problem, you can find for example reports about exploding batteries in iPhone 7. Interestingly, the manufacturer of batteries used in both of these smartphones is Chinese company Amperex.
There were many jokes abut these exploding issue, one of them is that Samsung is proudd of having this feature before Apple. In South Korea, Samsung released a patch for people who don't want to return their devices. It avoids the battery being charged more than 60% of its capacity, what is kind of funny. You may also want to watch this video: https://www.youtube.com/watch?v=_GhODn4FRoE
Maciej Główka said…
I agree, that exploding batteries in note 7 is possibly the biggest problem for Samsung in this century and probably in the entire company history.
Smartphones are becoming more and more powerful, have longer battery life and in the same time getting thinner. In my opinion it was inevitable, that something like this will happen. I think, that Samsung did really well in terms of PR, their action was quick and safe for customers. I am sure, that customers will quickly forget about this accident.
Unknown said…
I have heard that it is not only Samsung's problem and iPhones also explode. Apparently companies nowadays pay more attention to competing with their rivals than to the safety of their products.
Kacper Zaremba said…
I can't agree with you Maciej. Replacements of exploding phones, also exploded. Is that a good and safe PR action?
Exactly, I am not a Samsung fan either. It is too often the case that their devices are poorly designed. Also, they usually prefer no to follow generally accepted practices or guidelines and tend to "reinvent the wheel". Hopefully, Note 7 will teach them some lesson...
But after the replacements also exploded they finally cut off all Note 7.
Not only Samsung has got problem like this. I think everybody remembers Iphone 6 bending issue. For me Samsung did everything they could to save their image and people will easily forget about this. People are choosing Samsung phones because of their quality and will buy them even after this scandal.
KamilG said…
Mistakes happen, but the leader should not allow itself to such errors. I've also read that in the United States is allowed to bring these phones on airplanes.
My friend also recently come into contact with a statement such as returning from Greece to Polish plane Line Smart Planet.
It is forbidden to charge your phone on the plane and generally can not be switched on even in the flight mode.
Unknown said…
For me it is unthinkable that such a large company like Samsung has produced a damaged phone. Since I learned about the exploding phones from Samsung, the next few years, not a pile of phone samusnga
Adam Nowak said…
Exploding Samsung smartphones marked the end of Samsung dominance. I think that the real cause of this catastrophe is their competition. Maybe someone in Samsung was bribed to create that drama? We will never know. I would bet that Chinese companies had a little role in this.
Sorry but there is just too much of technical correlations now that's the main problem of many things on the market right now. Check out many problems with car service actions (like Toyota, Nissan etc). I think that there is time for the consumers on the market, that's why producers are willing to fulfill their errors even by taking damage on their good reputation.

Errors will keep on happening - bigger or smaller, I think it's better when producers are trying to "take care of them - regardless of the consequences".
Unknown said…
Oh yes, this is not a secret that Samsung has a serious problem with it's image right now. Financially, this situation is not so bad, but in the eyes of many people around the World as a brand they lost a lot. However, this is a huge company doing many different devices from washing machines, TVs, laptops to phones. Samsung develops a large part of South Korea gdp. I know that this one is one of the most important sector for them, and someone who is looking for superb premium bigger phone will choose rather iPhone plus models instead of an Samsung devices.
Wojtek Kania said…

No invention whose is manmade never be perfect. iPhone 6 was contort with any problem, but Apple improved this defect. Now, as with any new software or phone they are better. Any devices will not be perfect. They could be better, but always they will have some fault.
Unknown said…
It came as a real shock for me when I first heard about that matter, I had no idea that such things could happen in a real life. Precisely speaking I've read about iPhone explosion during telephone connection, which resulted in an unfortunate person becoming deaf forever.From that time I always feel uncomfortable when talking on a mobile phone (as I do it quite often)for a longer moment, especially when there are some strange sounds on the line. Probably two things don't have much in common, but who knows? In such cases if only possible I change the mode for out loud. I prefer to be prejudiced rather than to be deaf for the rest of my life, moreover free phone exchange won't make it up to me.
Jarek_Ziem said…
It’s real problem for Samsung but the problem had been enlarged by US media and Apple. There are also exploding IPhone but almost no one know about them. Samsung had a drop of 2B in value, it shows us how customers become real power in the modern world. They already started to improve and repair their errors with free returns and giving money back to the clients. We’ll see if it’s the beginning of the end for the Samsung but it’s not likely to happen.
Sylwia Pechcin said…
In my opinion the smallest problem is that people lose their phones and have to change them to the new ones, the biggest problem have those people who were harmed in some way using their smartphones. I don't think that Samsung will failure after this scandal, because it's a large company which has built their image for years and many people respect their products anyway, so the world won't remember this soon.
It’s a huge PR disaster for Samsung, maybe blown out of proportion, maybe not, but no doubt it was dangerous.
It is really scary to think about your phone exploding while you’re calling someone. The exchange and recall of damaged devices was only think that Samsung could do to control the damage. Time will tell if it affect their credibility, but I think that customers will quickly forget about this accidents.
Unknown said…
This story must be real blow for Samsung. Companies like that build their opinion by years and -as we see- can loos it in a few minutes. This days when competition is so strong and so common people chose quality, rank and for sure safeness. We reamber mistakes like this and it takes a long time to restore trust. I believe that Samsung will try satisfy clients as much as possible and show that is a trusted company.
Unknown said…
I just can't understand how so big company as Samsung could make such a simple mistake, where hundreds of people were working on this phone and no one notice fault in construction. Thats definetly affect on company image but who want to have a smartphone which can explode anytime? Absolutely not me.
Unknown said…
This comment has been removed by the author.

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