Following world wide reports of over 100 cases of the Samsung Galaxy Notes exploding and catching on fire, Samsung has decided to announce a massive recall of their new phone. There are now halting sales and stopping production completely of their new phones and they are encouraging consumers to return their phones. There has already been many instances in which individuals have been severely burned and have needed skin graphs to replace their skin which has been burned off.

Samsung has reportedly tested their phone and have found no external or internal issues, however this is not shown through the numerous cases of their phone catching fire. Even airlines are taking precautionary measures to ensure that no Galaxy Notes are allowed on the plane in the event that the explode or catch fire (Cosmin 2016).

This incident will tarnish Samsung’s reputation and will cause even the most loyal Samsung customers to rethink buying another phone from Samsung. There will be a missive swing of customers flocking over to Apple or Android. Google has also launched their new phone Pixel which will definitely sway a lot of consumers to their phone instead of getting another phone from Samsung. Samsung will see their bottom line profits decrease drastically and they will need to strategize to keep the customers they have previously had, as well as potential new customers.

Samsung is giving customers over $100 of in store credit, as well as a guaranteed replacement of their phone for their newest model. However I believe this incident will cause all consumers who purchase phones to think twice before they walk in to a Samsung store. In Alon Aminov’s blog “Have the exploding Galaxy Note 7s Destroyed the Company?” he discusses that ramifications of this incident and how the company will face decreasing profitability in the next coming years. However, I really agree with his point that the customers of Samsung should be able to use their newest model which is the Galaxy S7 until all of the issues are absolutely fixed. Anyone who is still using their phones should feel safe about the product and Samsung should incur this large fix cost to mitigate some of the damage that has been caused to their company.

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References:

Cosmin. “Airlines Improve Safety Measures after Reports of Exploding Samsung Galaxy Note 7                   Units.” Phone Arena. Phone Arena, 2016. Web. 17 Oct. 2016.