Tuesday, October 11, 2016

Samsung stops sales of Galaxy Note7. Stock market crash: -6% – Corriere della Sera

“Turn off the Notes 7 and do not use it more”. Samsung raises the white flag. After weeks of news alarming on mobile in flames and explosions, the giant south Korean will permanently suspend the production and sales all over the world, what would be its new top of the range. That now appears to be the cause of a biggest flop in the history of Samsung. And the costs are not only in economic terms – the Stock exchange in Seoul, the title falls 8 percent – but especially in terms of image. The abandonment is final, ” admits a spokesperson of Samsung. Many analysts are already at work to calculate the loss of the Korean giant: not less than ten billion dollars. In addition to the humiliation, you have to consider is the impact on the reputation of its devices, presented always as innovative and reliable. The same Notes 7, at the launch of August, he had been described as a “jewel” of technology, the smartphone the most sophisticated on the market.

Two months of trouble

The phablet was released on August 19 in ten Countries. The 2 of September – the day fixed for the opening of global sales – the Korean company has announced the global appeal of the devices already on the market. The problem is the battery: if charging, may take fire and explode. Are 35 confirmed cases over 2.5 million models distributed. All to retrieve and replace with models that are declared “safe”. And if the international airlines have banned the use on board of Notes 7 – the first time declares to be dangerous to one specific model – the incidents do not stop: the new devices emit smoke and become hot, just like the ones that they replaced. It happens on a flight just before take-off, but also in the other seven cases: four in the United States, including a man from Kentucky who got to the hospital for inhalation of smoke coming from the Notes 7; one in Taiwan and two in South Korea. The american At&t and German T-Mobile refuse to continue to offer their customers the maxi smartphone. The koreans say they want to “adjust the volumes of production to improve quality control and to allow in-depth investigations”. It is not enough: a few hours later, they surrender.”The first time – explains the analyst of Hmc Investment, Greg Roh – could be an error, but since the defect is re-presented on the same model, the result has been a loss of confidence on the part of consumers”.

Refunds

In a statement, Samsung explained, “the consumers’ safety remains a priority” and that for this and ask, “at the global partners to stop the sale and replacement of the Galaxy Note7″. On the american website of the group reads: “the owners of the original Galaxy Note 7 or Galaxy Note 7 is provided in replacement will choose to replace them with a Galaxy S7 or Galaxy S7 Edge, and related accessories, with a refund of the price difference or, alternatively, contact your point of purchase for a full refund”. And for those who will return the phone, there will also be a good 25 dollar credit.

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Samsung Galaxy Note 7, before (and after)?battery explosion

turned Off in airplane

According to the Consumer Product Safety Commission (Cpsc), the american agency responsible for the safety of consumer products, the group’s decision to the south Korean “is correct.” Also, the Cpsc has recommended to turn off and cease the use of the Note7. And the Federal Aviation Administration (after the accident on a flight of Southwest Airlines) again ask passengers to turn off your phone before getting on the plane and not send it with the checked baggage. “In the light of recent events and the concerns raised by Samsung on its Note7, the Faa strongly recommends that passengers do not turn on or charge these devices on board aircraft and not stow you in any baggage,” reads a press release published by the aviation of the Usa on his web site. The restrictions, specifies the Faa, also applies to the devices recalled and restored.

No more virtual reality for the Notes 7

The reactions are also coming in from other companies. As the Oculus, which has made the viewers Gear Vr in partnership with Samsung. The company specializes in virtual reality owned by Facebook, has announced an update that will make the mobile app that is incompatible with the Notes 7. “The safety of consumers is a priority of Oculus”, reads the note on the site.

the flop

The smartphone market is saturated, and Samsung is always destreggiata – to the sound of strategic marketing – including the quality of Apple and the low cost of chinese manufacturers. First row: Huawei. The Notes 7 represented an opportunity for redemption: a high-end product, expensive but innovative. Launched into a crucial period also for the balance of the release of the new iphone, the iPhone 7. Now, with the official withdrawal from the market, Samsung may have to face a loss of credibility towards customers. And – consequently – to a growth of pressure from shareholders, are pushing the family founder, Lee, a change of strategy and of business models. The criticisms mainly concern the intersections of financial that allow them to control the company despite owning only 5 percent of the capital.

October 11, 2016 (change the 11 October 2016 | 16:41)

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