Well, many different people have classified the Samsung Galaxy Note 7 tragedy in their own different terms and right now, we don’t even know what other words to use that’ll give you a perfect description of what actually went down at the company in the past few weeks.
I guess Samsung has finally decided to save face a second time after the recalling of the Note 7 units didn’t seem to solve anything as they have now decided to “pause” the output of the new phone, according to the South Korea’s Yonhap news agency. The company had hoped to fix the problem that its devices kept bursting into flames by issuing replacement phones with new batteries – but after reports this week that those models were also blowing up, the company has taken the unprecedented measure of pausing production.
This is to show that Samsung really cares for the welfare of its customers but in this case, I’d rather NOT be a Samsung customer than let them care for my welfare.
“If the Note 7 is allowed to continue it could lead to the single greatest act of brand self-destruction in the history of modern technology,” said Eric Schiffer, brand strategy expert and chairman of Reputation Management Consultants.
“Samsung needs to take a giant write-down and cast the Note 7 to the engineering hall of shame next to the Ford Pinto.”
I wouldn’t blame the opinion above because it has actually gotten to that extent. In fact, I share the same opinion.
Samsung shares, which have rebounded after an initial sell-off on the recall, closed down 1.5 percent, compared with a 0.2 percent rise for the broader market.
“I think the cleanest thing to do is to give up on the Note 7,” said HDC Asset Management fund manager Park Jung-hoon, whose fund owns Samsung shares.
“What’s scary is that this is causing people to repeatedly doubt Samsung’s fundamental capabilities, so it’s important for Samsung to get past this issue quickly.”Samsung’s recall crisis has coincided with pressure from one of the world’s most aggressive hedge funds, Elliott Management, to split the company and pay out $27 billion in a special dividend.
One can only imagine how much this tragedy has dwindled Samsung’s revenue. Well, it seems Samsung has heeded to the advice of a greater percentage of the general public and decided to HALT production, maybe for now.