The Galaxy Note 7, the successor to the Galaxy Note 5, was supposed to be the flagship model of Samsung. Unfortunately for Samsung, it didn’t go as planned. The Galaxy Note 7, an Android phablet smartphone, was officially released on 19 August 2016. On 11 October 2016, after a series of events, the Galaxy Note 7 was permanently discontinued. The problems were due to a non-replaceable battery that was prone to explode.
To clarify, here is a brief overview of events leading up to the discontinuation of the production:
Aug. 19 – Official release Galaxy Note 7.
Aug. 24 – First report Note 7 explosion in South Korea.
Sept. 2 – Global recall of 2.5 million Note 7 phones.
Sept. 9 – U.S. Consumer Product Safety Commission urges Galaxy Note 7 users to stop using their phone.
Sept. 15 – Recall of about 1 million Note 7 phones.
Sept. 16 – First customer sues Samsung for burns from Note 7 explosion.
Sept. 19 – Note 7 exchange program started in South Korea
Sept. 29 – Statement saying more than 1 million Note 7’s in use with new battery.
Oct. 6 – Evacuation of a Southwest Airlines plane due to smoke from a Note 7 device on board.
Oct. 9 – Several providers halt issuing new Galaxy Note 7 smartphones due to safety concerns.
Oct. 11 – Sales and production permanently halted by Samsung, customers are asked to stop using the Note 7
Oct. 14 – Expected operating profit hit of around $3 billion for Q4 2016, Q1 2017 combined due to the Note 7’s discontinuation.
Recently, Samsung provided their Note 7 customers with a fireproof box to send their phone back. These boxes will not be shipped by plane, as that is considered to be too dangerous. Next to that, special gloves are provided to put the phone safely in the box. You can imagine what that does to the Samsung brand image. The intended solution of replacing the batteries with new batteries from a different supplier did not work. These new batteries exploded as well. Three customers have sued Samsung because of the smartphone fires. Samsung has stated that it is thinking about releasing only one flagship model per year, to prevent serious issues like this.
Moreover, recalling of the phablet smartphones is an environmental disaster. In 2013 it was stated that the construction of one smartphone needs about 75 kilograms of raw materials. As Samsung wants to prevent Note 7’s from staying on the market, the phones will not be refurbished. Currently, companies are hardly able to recycle smartphones. There are almost no parts in the Note 7 that can be recycled, including the material cobalt which is known to often be mined by child slaves.
Overall, it can be stated that due to the combination of an inadequate first solution, financial and environmental consequences, and the effect on the brand image this is a real debacle for Samsung. Essentially, discontinuing the production and sales of the supposed to be flagship model comes through as giving up.
Sources:
http://www.rtlz.nl/tech/samsung-geeft-klanten-brandveilige-doos-om-note-7-op-te-sturen
http://www.rtlz.nl/tech/terugroepactie-note-7-is-ramp-voor-het-milieu
http://www.reuters.com/article/us-samsung-elec-smartphones-timeline-idUSKCN12J03Z?il=0
