Samsung takes multi-billion-dollar hit to end exploding phones fiasco

“Samsung has killed off the Galaxy Note 7 in the hope of limiting the fallout from its exploding smartphone fiasco,” Jethro Mullen and Mark Thompson report for CNN. “The South Korean firm decided Tuesday to permanently halt sales and production of the Galaxy Note 7 just hours after telling customers to stop using all versions of the smartphone. Its stock plummeted 8% in Seoul, wiping about $17 billion off the company’s market value.”

“It was forced to recall about 2.5 million Note 7s in early September, just two weeks after the phone was launched, saying faulty batteries were causing some to burst into flames,” Mullen and Thompson report. “It then started to issue replacement phones but a number of customers reported that those devices were also catching fire, including one aboard a passenger jet.”

“Top priority will be to establish what exactly went wrong. The company initially blamed problems with a battery from one supplier. Experts say they believe a design flaw may have been responsible,” Mullen and Thompson report. “Analysts say as many as two million devices may still be in use around the world… Analysts at Nomura estimate ditching the Note 7 could mean $9.5 billion in lost sales and wipe out $5.1 billion of profit.”

Read more in the full article here.

MacDailyNews Take: The damage to the brand is the real problem for Samsplode. A problem the South Korean dishwasher maker so richly deserves.

The fallout will be a bigger, lingering issue versus the initial explosion.

Thermonuclear
Thermonuclear.

SEE ALSO:
Beleaguered Samsung permanently ceases Galaxy Note 7 production – October 11, 2016

21 Comments

  1. ScamSplod💣marketing release: Due to the explosive growth of our Note7 line we are shutting down production. To all our Fandroid owners, fear not. We are watching the smartphone market and are busy out innovating the market. In 2017 the Galaxy Note line will be replaced by the SuperNova line. We expect to set several firsts to market with our phones: our phones will be thicker and heavier to allow for cooling and exhaust fans, along with extra vents and heat sinks. We will lead in consumer safety with the first ever self-extinguishing phone. Larger, safe, wireless, slow charge technology. Plus many other bell & whistles we won’t mention here. All for a price only 20% than an  iPhone. We look forward to selling you ScamSplod💣 phone of the quality you’ve come to expect from us. /s 🖖😀⌚️

  2. Reminds me of “Deep Water Horizon”. Leadership all the way up and down the line forcing engineers and technicians to “speed up” the process. Of course they will blame the technical aspect and lay it at engineers feet.

    The Fukushima problem was known almost immediately by the engineers, but leadership all the way up the line forced them to deny the problem until it became visibly obvious.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.