It’s over for the Galaxy Note 7.
In just one day, Samsung has released a statement saying it was adjusting the phone’s production schedule, to permanently scrapping it. The South Korean tech company has taken the unprecedented move of ending its flagship line of smartphones following the botched recall of 2.5 million units due to battery explosion and consumer complaints, deeply damaging the Galaxy brand name and the company’s reputation.
Samsung’s decision to scrap its latest flagship phone caps problem-plagued months for the company, who had a brief success of releasing the latest innovative phones before reports emerge that its batteries were prone to overheating and eventually catch fire.
The tech giant launched the phone in August, and soon afterward the tech company issued a massive global recall due to battery problems but the replacement devices started catching fire too. The US Consumer Product Safety Commission issued a statement urging consumers to stop charging or use the device, resulting to the America’s top carriers halting sales and exchanges of the device.
Although there were only a few defective units, the potential danger is high. Recently, a passenger’s replacement Galaxy Note 7 emitted smoke inside the plane resulting to the evacuation of a Southwest Airlines flight in Louisville, Kentucky.
According to Reuters, scrapping the Galaxy Note 7 means the tech company could lose the potential sales of 19 million phones or roughly $17 billion, which the company was expected to make during the phone’s product cycle.
Although the multinational conglomerate company has around $70 billion on its balance sheet, the tech company’s bigger problem will be the impact of the Galaxy Note 7 fiasco on its reputation and the Galaxy brand.
Unless Samsung can make safe, groundbreaking and state of the art devices on its next line of flagship phones, the tech company will lose the trust of its consumers.
Photo Courtesy: John Karakatsanis/ Flickr