The world’s largest mobile giant was forced to recall the units of its galaxy note 7 on Friday after reports emerged of several devices setting on fire.
The phone which has been extremely successful & positively reviewed is now being recalled worldwide, in a move that is going to cost Samsung hundreds of millions of dollars. Such issue was unpredicted for the company & news of the issue has already an impact on Samsung’s share price.
Unfortunately, the disaster came days before the launch of a new iPhone from Samsung’s biggest rival Apple. For Apple, it is an early gift, on contrary for Samsung’s reputation it is a big blow. Galaxy Note 7 was considered to be Samsung’s pre-emptive answer to Apple’s iPhone 7 & which is expected to be unveiled later this month.
Note 7 sales began two weeks ago. The company was on the track for its first mobile profit growth in three years with the note 7. It had record break growth in company’s profit. 2.5 million units had manufactured from which 1 million units had already sold. But now all the devices are being recalled from all over the worldwide.
Last month, users started posting photos & videos of exploded devices. Samsung has revealed 35 reported cases in which Galaxy note 7 batteries had exploded. Samsung is conducting an inspection to identify the affected batteries.
The company stated, “For customers who already have Galaxy Note 7 devices, we will voluntarily replace their current device with a new one over the coming weeks. We acknowledge the inconvenience this may cause in the market but this is to ensure that Samsung continues to deliver the highest quality products to our customers.”
But it’s fair to say that it is going to cost Samsung hundreds of millions of dollars & also the image of Samsung’s quality will be in jeopardy.