Samsung: Will The Brand Still Be Viable?

Galaxy Note 7s are back on the shelves. Samsung will resume selling Galaxy Note 7 smartphones to consumers in South Korea after the product recall. The company is bound to sell Note 7 in Europe come October 28.

Samsung asked their customers to return the Note 7 after reports of batteries igniting during or after charging. The company said it was due to faulty batteries.

Overall, Samsung sold about 2.5 million Galaxy Note 7 handsets worldwide before recalling the product. A total of 80% handsets sold in Korea had been replaced or returned.

Similarly, in Europe and North America, the figure is lower but still not less than 50%, according to Samsung.

A company source said 95% of the customers returning their handsets still choses to continue with Samsung. One big factor to it is customer loyalty.

Incalculable losses

But the cost must be huge. So massive that to quantify it in monetary terms simply cannot be done. Partly because Samsung’s efforts and carefully planned sales pitch was now futile against its rival. The “disaster” granted the iPhone 7 a month’s head start.

On top of that, Samsung promises its customers quality products. It pitches itself on producing most of its components, hence the company does less outsourcing than their competitors. With the product recall, even the branding of their own as quality products might sound dodgy to customers.

Furthermore, the company replaced most of the affected units but a vast number of handsets are still out.

Finally, Samsung Note 7 and airlines do not go hand-in-hand these days. Airlines recently released a warning for passengers with Note 7. The handsets cannot be checked in. They should remain “off” for the flights entirety.

 

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