Samsung is working hard to regain public trust after the fallout from its Galaxy Note7 recall. On November 7, the Korean company reached out to the American public by running full-page apologies in The Wall Street Journal, The New York Times and the Washington Post. The ads emphasized the company’s commitment to safety and quality and its determination to fully investigate and address the cause of the Note7’s malfunctioning.
The apology came on the heels of Samsung’s announcement that its third-quarter earnings dropped 30 percent year-over-year due to the Note7’s fallout. Unquestionably, the Note7 episode has been a public relations disaster for Samsung. However, it has given Samsung an opportunity to demonstrate its integrity, commitment to its customers and why it remains a trusted industry leader that is strong enough to survive a significant setback.
Samsung Steps up to the Challenge
From the beginning of the Note7 fiasco, Samsung has taken proactive steps to address problems and alert the public. On August 24, the first reports of exploding batteries emerged from China. Within a week, Samsung had acknowledged the problem and announced a recall, offering to replace devices with new ones. Samsung then embarked on a public relations campaign in cooperation with governments around the world to warn customers to power down their devices and return them. Replacement devices would be issued with a green icon indicating that they were safe.
To prevent problems while devices were being recalled, Samsung issued an over-the-air update to limit charging to 60 percent of full capacity. Unfortunately, another round of problems emerged when one replaced device exploded and another began smoking on an airplane. At this point, rather than issuing another recall and replacement, Samsung made a difficult decision to halt production and sales of the Note7.
The disaster cost Samsung an estimated $3 billion in profits. Despite this, the company did not cut any jobs. Meanwhile, it began offering Galaxy S7 and S7 edge smartphones to customers who had pre-booked Note7 orders as consolation.
Samsung Remains an Industry Leader
The Note7 may be dead, but Samsung’s smartphone line remains at the head of the industry. TechRadar ranks the Samsung Galaxy S7 edge as the best smartphone currently on the market and the S7 as the runner up. The S7 edge wins for its beautiful 5.5-inch curved screen, industry-leading camera features (which include a 5MP front lens and a 12MP rear lens) and waterproof capability.
The S7 boasts these same features minus the curved screen, with a slightly smaller 5.1-inch flat screen. Both phones include all the advantages of Android technology, including the ability to integrate with Samsung Pay, one of the most widely-accepted mobile payment apps currently available.
Samsung Delivers Cutting-edge Innovation
Samsung’s track record for smartphone innovation leaves industry watchers looking to the upcoming release of the Galaxy S8 to restore the company’s reputation. The S8 prototype currently includes a dedicated button for an artificial intelligence assistant that will compete with Apple’s Siri, reports The Wall Street Journal. The S8 is also expected to adopt a nearly bezel-less OLED display that will allow a screen-body ratio of nine-to-one.
Samsung has delayed the release of the S8 until it can fully analyze the causes of the Note7’s problems, sacrificing short-term profit for long-term commitment to quality. This also demonstrates why Samsung remains a name that can be trusted.