Talk about fault in the stars. If you thought your life sucked and bad luck was your best friend, perhaps Samsung’s situation here will help you change your mind. By now, the Galaxy Note 7 recall has made more headlines than the phablet usually would on its own so I’ll assume you’re already aware of the issues. The scale of the issue can be easily judged by the fact that Samsung USA’s COO Tim Baxter had to come out and publicly apologize. Apparently, a compromise on quality was made to beat the iPhone 7 to the market.
The South Korean firm has nearly finalized the original recall of 2.5 million units after much brand value destruction. The Note 7 fiasco brought every other Samsung phone and their issues to headlines and since then I’ve been trying to mostly avoid any Samsung phones catching fire reports. But it looks like it was not all a false alarm. Preliminary data shows that a certain percentage of the replacement units are also suffering from overheating, which in some cases leads to devices catching fire even when not charging.
A Southwest Airlines flight from Louisville to Baltimore had to be evacuated just before take off as a Note 7 exploded in the aircraft. Its owner confirmed that he had picked up the new unit from an AT&T store on 21 September. This has resulted in the USA’s consumer safety watchdog (CPSC) launching a probe into the incident.
While there’s currently no official information on whether or not the phone in question is a new, safe Galaxy Note7, experts are of the view that if it indeed turns out to a replacement unit, Samsung could face a second recall of the handset.
“If it’s the fixed phone and it started to smoke in his pocket, I’m going to guess there’ll be another recall.” – Pamela Gilbert, former Executive Director of the U.S. Consumer Product Safety Commission
The Louisville Metro Arson Squad is currently in possession of the device, working with Samsung, FAA and Consumer Product Safety Commission representatives to determine the cause of the explosion and if it is a replacement Note 7 as the phone’s owner claims.
Nancy Nord, who served as chairwoman of the CPSC, also explained that a second recall is indeed possible, although this rarely takes place. “Certainly [Samsung] could [issue] another recall, if it appears this is something beyond an aberration,” she noted, adding that the investigation must first determine if this was indeed a replacement Note 7 and the cause of the fire.
While Samsung’s Q3 financial report doesn’t show that the Note 7 recall has a huge effect on the company’s earning – and it is expecting to make $7 billion in profits – a second recall would most likely have a bigger impact on its revenue as well as the brand Samsung which is currently at the 7th position in the world according to InterBand’s Best Global Brands list. Meanwhile Sprint is allowing its customers to swap a Galaxy Note 7 with another phone if they wish.
Source : Bloomberg