Samsung Galaxy Note 7 – Killed A Perfect Year for Samsung

It is really tough time for Samsung as its latest flagship gets blame for more than thirty five fire accidents just after a few weeks of sales. People started to share pictures of their burnt Note 7 smartphones creating a bad reputation for Note 7, despite of many positive reviews.  Added to this airlines of U.S/India and many other countries have put a ban on usage of this particular device in their flights.

Samsung Galaxy Note 7 - Killed A Perfect Year for Samsung

Samsung sold more than 2.5 million galaxy note 7 units around 10 countries   the company made a rough estimation that 1 out of 42000 Note 7 units might be defective. There can be more units which are defective and yesterday Samsung has issued a note stating that all Samsung Note 7 units should be returned back and new units will be issued soon.

The Best Smartphone Ever Made is a Mess

Samsung Note 7 Pre Registrations Opens Sale Starts 2 Sept India

What a mess of the best smartphone Samsung ever made or probably the best smartphone that was ever made by anyone in the world. Better than the iPhone 7 and the iPhone 7 plus. ( It has the 3.5 mm jack and also has far, far superior display than the Apple’s latest).

A small mistake by someone, who should have done a thorough testing of battery cycles before actual shipment. But To err is Human, Apple had a similar issue when they launched the iPhone 4. The iPhone 4 had an antenna issue and call connect/drop problem when the phone was held in a particular way. The problem was made even worse by late Steve Jobs telling customers they are holding it wrong. It was a nightmare for Apple back then and it is for Samsung now.

After all these incident Samsung announced that customers can swap their existing Galaxy note 7 devices.

What Caused the Samsung Note 7 to Explode ?

It is stated that these fire accidents took place when left for charging, and so the defect might be with the batteries. Samsung  found that the burned units carried batteries of one particular Supplier out of the two. which also saved the sales of the Unit from suspension in China as the units shipped to China carried the battery of other supplier. But some reports claims fire incidents happens due to usage of a converter cable for micro USB to Type C, which means people may have left there phone charging with older incompatible charger.

One of such recent incident happened in Florida. Where a man left a charging Samsung Galaxy note 7 inside his jeep. Within minutes he found the jeep on flames. However the man says he left the engine running to power the AC and charging port, which may also be a cause for fire. But the blame was put on Note 7.

note-7-burnt-jeep

In another incident a man left his note 7 charging in his garage and after a while found the garage was on fire, according to fire brigade investigation, the fire was emerged from the wall socket where the Note 7 was left for charging.

Smartphones getting fire are not new thing, every smartphone brand from YU to Apple all suffered such issue and one or two cases even resulted in death,  but 35 incidents within a span of a week is disastrous for any brand.

Koh-Dong Jin Head of Samsung on the Issue

Commenting on the issue, Koh-Dong Jin head of Samsung’s smartphone business said on recall of Samsung Devices ‘There was a tiny problem in the manufacturing process, so it was very difficult to figure out, and fix with a software update. ‘It will cost us so much it makes my heart ache. Nevertheless, the reason we made this decision is because what is most important is customer safety.’

What Samsung Loses From this Fiasco

Samsung has lost 10 billion Dollar of valuation since they announced that the Note 7 has a fault and they need to recall all the units. Several analysts are predicting that the Samsung Note 7 fiasco can help Apple gain ground this year which was earlier looking difficult with iPhone 7 not meeting customers expectations.

The Samsung Note 7 will help Apple gain at least 10 to 15% extra sales this year and couple of Billion dollars more to their profits. On the other hand Samsung Note 7 recall will cost dollar 1 billion to the Korean conglomerate which has over 23 billion dollars of cash reserve.

Samsung S7 and S7 edge brought tremendous success to Samsung this year, clearly the best smartphones in 2016. What Samsung was not able to achieve with the Samsung S5 , S6 , S6 edge and Samsung Note 5, the S7 and S7 edge did it for them. Samsung reported highest revenue in the last quarter and profits surged by 18% to 7.19 billion dollars.

The Samsung Galaxy Note 7 – Killed A Perfect Year for Samsung. If Note 7 would have worked as intended it would have been the best year for Samsung smartphones in terms of sales and revenue.

More than the money it shakes consumer confidence about the brand and it will take a lot more effort to come back to the position Samsung was poised to be this year.

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