As mentioned in Janice’s blog, Samsung is facing one of the most challenging moment during its history.
Released on August 19th, the latest product which should be the most competitive one against iPhone7, was reported with explosion issue from China on August 24th, even less than a week from the official release. As far as I know, Samsung did not give a prompt reply until over 30 explosions took place by the end of August. It must be one of the most bleak month for the business. And finally, in early September, Samsung announced to recall the Note 7 smartphones which is also the largest worldwide recall in consumer electronic history. Sales are halted. Even the Federal Aviation Administration (FAA) declared that it’s now illegal to use a Note7 aboard any aircraft under FAA jurisdiction.
http://www.androidauthority.com/samsung-galaxy-note-7-recall-714419/
https://www.cnet.com/news/why-is-samsung-galaxy-note-7-exploding-overheating/
Is that the end? Concede and compensate, apologize to the consumers, will the problem be solved so easily? Obviously not. First, Samsung has lost the most fundamental brand reputation, who will be willing to carry a bomb with him or her? It is not about the quality but about the safety of human’s life. Second, majority are really infuriated about the late reaction given by the company, it took such a long time to make an announcement which also caused to loss in customer loyalty. Simultaneously, the competition in smart gadget market is always so intense. Besides the existing strong rivalries such as Apple and Huawei, Google has just launched their new Pixel smartphone while Amazon is working on its Echo, we cannot help thinking about that how the market would be during the temporary leaving of Samsung. The business will be suffering its most difficult time not only in how to beat the competitors but also in how to gain the loyalty back, which is far more challenging the former one.
References:
https://www.cnet.com/news/samsung-galaxy-note-7-fires-faa-flight-illegal/
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