Samsung says Galaxy Note 7 recall to cost at least $5.3 billion, but is it enough?
Last week, from peer blog I got some interesting opinion which is iPhone7 is not quality enough but customers are still willing to purchase it due to the reputation of brand APPLE. As Prof joked in class, when we mention “apple”, it almost directly lead everyone to think about that company. So, the boom issue of Galaxy Note 7 would bring Samsung how much invisible damages?
Timeline:
Aug 24th – Note 7 “BOOM” (one million WON bomb) ->
Aug 31st – Samsung recalled 2500 thousands Note 7 and announced the reason to explosion is battery of SDI. (but actually the explosion is caused by the design of Note7 hardware)
Sep 2ed – Samsung announced that Note 7 is safe to use and continued to sell.
Unfortunately, Note7 still BOOM BOOM BOOM. Oct 10th, Note7 stopped selling and becomes the phone which was died earliest in the history of Samsung.
As an ancient Chinese proverb, “You may escape an untoward act of God, but never the evil of your own.” If Samsung from the most beginning realized the importance of explosion and calling back all the phones to figure out the reason, they would not be pushed to this dangerous place. Comparing to the cost of recalling the phone, the bankruptcy of Credit in consumers obviously brought Samsung destruction level of harm.
Last Friday (Oct 14th), Samsung Electronics said that the discontinuation of the Galaxy Note 7 would cost the company about $3 billion (U.S.) during the current and next quarters, bringing the total cost of the recall to at least $5.3 billion(1). This must be the reason why Samsung don’t want to recall the phones back as soon as possible.
For now, the value of newest Gear VR is dynamic falling to one of fifth compare to original price due to it’s the accessories of Note7. In addition, Samsung’s action of deceiving consumers that the main reason of explosion is the battery made people angry. The true reason of “BOOM” is on the process of assembly, so that the change of manufacture of battery is impossible to improve the quality of Samsung Phone. With the doubt of quality of the company, the impact which will be brought to Samsung is unbelievable.
https://www.thestar.com/business/2016/10/14/samsung-says-galaxy-note-7-recall-to-cost-at-least-53-billion.html?utm_source=twitterfeed&utm_medium=twitter