Samsung have officially confirmed that production of one of the market’s most popular smart-phones will cease after less than 2 months since its release date. Why? Because, to be blunt, it’s a health risk.
The South Korean tech giant announced on Tuesday it was putting a permanent halt to production of the Galaxy Note 7, for the sake of consumer safety. This comes only a day after reports they were “adjusting production” and less than a week after an already replaced device caught fire aboard a plane.
A Samsung spokesperson confirmed, “Putting consumer safety as the top priority, we have reached a final decision to halt production of Galaxy Note 7s.” whilst also advising owners of the phone to “power down and stop using the device” immediately (in case that wasn’t already obvious…).
But what went wrong?
Well the answer to that is still unclear. Samsung (and regulators across the globe) are still investigating exactly what went wrong with the Galaxy Note 7, but some ideas are already being thrown around. Some point out that every lithium-ion battery-powered comes with a risk if it isn’t designed or built correctly. That’s why the phone industry has a long history of exploding batteries, however Samsung managed to break the record receiving over 100 complaints in less than 2 months.
So what does that mean for Samsung?
The exploding-electronics maker is expecting to lose about $3B due to the recall, which is obviously a significant chunk of change. But they make hundreds of billions of dollars a year, so financially it’s pocket change.
Brand-wise? Now that’s a different story.
Let’s take into account that we still don’t know what caused the phones to blow up, the initial recall was handled awfully, and it even took stores to drop the phones before Samsung ultimately decided to end production. Samsung’s brand identity is not looking good right now, but only time will tell how strong they’ll bounce back.
Maybe if Samsung had held their hands up from the beginning and admitted a fault, rather than letting phones blow up for 2 months they wouldn’t be dealing with such a crisis…