The Samsung galaxy note 7 is one of the Samsung’s flagship models in the smartphone market and the worst debut by any smartphone in recent times.
The Samsung Galaxy note 7 follows Galaxy note 5, one of the most popular android devices of 2016. It was launched with much fanfare in August 2016, a move which can be considered to cover ground before Apple showcased the iPhone 7 on September 7. It was expected to start a fresh war between the two dominating smartphone companies as it was feature packed and seemed to get a great start with pre-order records smashing in South-Korea. They had to delay the product release in other countries to meet the high demand.

With images of charred phones flooding social media, the unprecedented recall has been a humiliation for Samsung and could cost the firm $3 billion (roughly Rs. 19,939 crores) in the long run, analysts say.

The problem with the phone:

It didn’t take long for the early reports to quickly turn sour when multiple reports were received of the phone overheating and then exploding. People quickly turned to the social media to post the photos and reports of the exploded devices showing burnt, charred and melted phones. Issue of safety prompted Samsung to hold sales and issue a worldwide recall in early September with an official statement of the 3,500 mAh lithium-ion battery problem and they recalled about 2.5 million Note 7 devices from US, South Korea, and other markets

How will this affect the smartphone market:

Just few days after Samsung offered a full product recall, Apple officially released their iPhone 7/ Samsung now stands a serious challenge against its long-standing rival especially as Apple had received criticism on its own for its hurried security update for the iOS 9.3.5 and the lack of headphone jacks were soon dropped by the press in favour of Samsung safety issues. Apple is hence expected to benefit a lot from their chief competitor’s troubles as analysts expect trust in Samsung to waiver at least.

What effect will the recall have on the customer and the company:

While Samsung assured customers that the recall procedures will be carried out as quickly as possible and the exchange procedure will be completely hassle free, however, the US exchange program promised that customers can expect their new devices no later than September 21st, 2016. The inconvenience was clear and many felt that the 25$ gift card given as compensation is not enough. Taking safety as the priority the US Federal Aviation Authority called on passengers to avoid using galaxy note 7 devices on their flights. India’s aviation regulator Directorate General of Civil Aviation on Friday asked passengers not to charge or switch on the device on board the aircraft. The advisory issued to airlines and passenger says: “In light of recent incidents involving battery issue with Samsung about its Galaxy Note 7 devices globally, travelling public and airlines are advised not to turn on or charge the mobile phone on board the aircraft.”
It also prohibited carrying it in checked-in baggage. A passenger can, however, carry it in hand luggage in switched off mode.
Developments such as these on the news adversely affected the Samsung’s good brand image and were reflected by falls of the stock market during the period between the launch and recall in September 2016. Samsung’s market value took a hit up to 22 billion dollars as a result of the initial recall while the prediction says the problems with the note 7 could cause up to 1 billion dollars.

What does it mean for the long-term brand image for Samsung:

While the short-term economic impact of the recall should be manageable for a firm as large and influential as Samsung, however longer lasting damage to the company’s reputation could prove more difficult to fix as more reports have emerged of phones overheating causing serious burns and causing even house and car fires being blamed on the note 7. Potential customers of the Samsung device are expected to think twice before buying other models from the same company.

What about other Note devices? 

There are also reports of other Samsung devices exploding including a Note 2 catching fire in an Indigo flight in India.

Are the replaced phone safe enough?

As per the fresh reports a Chinese user of the replaced ‘Safe’ Samsung Galaxy Note 7 said his device exploded while charging, raising fears of fresh battery issues hitting the South Korean company’s phones after a massive recall. The whole affair could cause considerable doubt in a customer’s mind next time they shop for a smartphone which obviously helps the likes of Apple.

160927142551-samsung-note-7-fire-1-780x439 Essential facts about the Samsung galaxy note 7 recall and its post-effects on Samsung's reputation Technology

A photo provided by Hui shows the aftermath of the fire.

It’s down to the electronics giant to put things right as soon as possible and to regain the attention and trust of its customers for the future.

The Galaxy Note 7 is powered by a 3,500mAh battery made by Samsung SDI and sports a 5.7-inch Super AMOLED capacitive touchscreen with 1,440×2,560 pixels (518 ppi pixel density). It has an Exynos 8890 processor, an Android 6.0.1 Marshmallow operating system, a 64GB internal memory expandable up to 256GB via microSD card, and a 4GB RAM. The handset also mounts a 12MP main camera with f/1.7 aperture, 26mm lens, phase detection autofocus, OIS, LED flash, 1/2.5″ sensor size and 1.4 µm pixel size, and a 5MP front snapper with f/1.7 aperture and 22mm lens.