Samsung has decided to stop production, sales, and replacements of the Samsung Galaxy Note 7, his most recent, prestigious and problematic smartphones. In short, Notes 7 is dead, will not come back on the market. This was a decision almost forced to the biggest company in South Korea, after the report from around the world of the annoying habit of the device to ignite and explode.
At the beginning of September the asian giant, had tried a bold move, giving away what is probably the biggest recall and replacement in the history of mobile, and probably of the consumer electronics in general. The plan, however, has had little success, given that customers have started to report how the problem of smoke and fire is concerned with the smartphone in its stead.
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Note 7 was received with very positive reviews. As for us, we had highlighted the merits and flaws of the device, which is not particularly far from the Galaxy S7 Edge. For the record, we had also criticized the battery, even if not obviously for the reasons that have caused the problems: we assumed that the 3,500 mAh were limiting for a device with display 5.7″ with QHD screen.
The company will now have a lot of time to reflect on what went so bad for a device that, in theory, would have to be the first competitor of the iPhone 7 in the period of the christmas holidays, a traditionally very profitable for the tech companies and not only.
In a first time, Samsung had tried to blame the responsibility to the supplier of the batteries (whose name is not known, but that for the usual people aware of the facts might be the affiliate, Samsung SDI Co), but the problem is remained even when the Samsung has begun to purchase the component from another manufacturer.
is Not clear who will take the blame of the disaster of the Notes 7 within Samsung: in December of last year, the telephone division had passed under the control of D. J. Koh, for even if the hot potato will not remain in his hand, he is sure that in any case he will have to provide explanations to the board of directors. However, Samsung has the habit of “remix” armchairs of the leaders at the end of the year, especially if the results have been disappointing, or if it showed some problem of considerable entity.
The consequences for the company asian will be nothing short of disturbing. To tell you the truth, it is wrong to use the verb in the future: even before the announcement of the end of the production the value of the shares Samsung has in fact suffered a collapse of 8% of their value. In other words, in a few seconds the value of the company decreased by something like 17 billion dollars (15 billion euros). For the game of the time zones, the announcement has caused a decline in almost 10% on the London stock exchange.
exactly, how much it will cost to Samsung this trouble? The first estimates of the analysts for the program to call initial spoke of an account between 1 and 2 billion dollars, but it is likely that now the leaders of the company would put the signature on a to the detriment of the flow. In reality, it is extremely likely that things will go worse: Chung Chang Won, analyst at Nomura Holdings Inc., before the announcement had estimated that in the worst case the question-Note 7 would have had 5 billion dollars on profits of Samsung.
all this, of course, without calculating the damages that will be produced by the loss of value of the shares and that, still difficult to quantify, that this affair will have on the image of the company so far known for the quality and reliability of its products. In addition to the 17 billion dollars that Samsung is expecting to cash in from the sale of at least 19 million models.
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and Yet, leave the Galaxy Note 7 is probably the best move Samsung could do, for several reasons. In the first place, as this affair will be a blow very strong for the reputation and the coffers of Samsung, the company is large and rich enough to survive. Moreover, from the point of view of the image, there is the possibility that the move is seen in a positive way: we have done what we could (call & replacement), and then we prefer to lose the money that put at risk our clients etc.
In fact, you can say that in this way, Samsung has managed to limit the scope of the problem, avoiding the defect of the smartphone it would cause excessive damage to things and people, then that would have led to expensive lawsuits for compensation. Ultimately, the company asian stands in front of the greatest challenge and the greatest opportunity of its history: we will see how will deal with this decisive moment.
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