In what is probably the final chapter of the Galaxy Note 7 recall and termination, Samsung has presented an apology and a technical explanation of the biggest smartphone phone commercial disaster to date. Samsung will lose at least $3 Billion dollars (some estimates were as high as $17B back Oct), and its market capitalization has lost Billions as well. But this could be the light at the end of the […]
While the Note 7 from Samsung has been officially recalled, getting rid of the phones is still a question that has yet to be answered. Will Samsung destroy them completely, or can their parts be repurposed or recycled and used for future products? Those are decisions that have yet to be made, but here’s a scary alternative.
With reports of the Note 7 exploding in markets around the world, we guess we were kind of surprised that the lawsuits did not come in sooner, but we guess it was only a matter of time. So far we know that there are at least two class-action lawsuits pendings, one in the US and the other in Korea.
It is surprising that despite hearing the various inconveniences and scares that customers have experienced over the exploding Galaxy Note 7 handsets that no lawsuit has been filed, or at least until now where what is believed to be the first class-action lawsuit has been filed against Samsung.
With Samsung killing off the production of the Note 7, safe to say that Samsung aren’t the only ones affected. Obviously Samsung’s partners and suppliers will also be affected because now they are no longer producing components for the phone, which we’re sure that many of them had assumed they would.
As you guys might have heard, airlines and governments around the world are starting to ban the Samsung Galaxy Note 7 from being brought onboard planes. Given that the phones are a potential fire hazard due, it makes sense. So the question is, what happens if you rock up to the airport and you have the phone with you?
Recently in the US, the Department of Transportation has officially banned the Galaxy Note 7 from being brought onboard airplanes. Prior to this, officials had advised passengers to turn off their phones and not to charge them, but now with this ban in effect, the phones can’t even be brought onto the plane itself.
With there being multiple reports of explosions, an official recall, and a ban from being brought onboard airplanes, you would think that existing Note 7 owners would be quick to return their devices for another handset that is “safer” and isn’t subject to quite as many restrictions as their current phone.
During the recall process of the Galaxy Note 7, airline companies and government bodies had warned users about the phone and banned the use of the devices onboard flights. Basically customers could still bring their phones on board, but they weren’t allowed to turn them on and nor were they allowed to charge them.
According to a recent report, it was estimated that the entire debacle with the Samsung Galaxy Note 7 would cost the company a whopping $17 billion, and it seems that the numbers might be pretty close. According to Samsung’s own estimates, they claim that the fallout from the Note 7’s recall will cost the company mid-3 trillion won.
Not only are the first batch of Galaxy Note 7s catching on fire, but last we heard, even the replacement units are experiencing problems as well. One of the more notable incidents was actually on board a Southwest Airlines flight where a replacement Note 7 handset had begun smoking.
Trust isn’t the only thing that has taken a hit over at Samsung. With the company officially discontinuing production of the Note 7 and with the CPSC issuing a second recall, this will no doubt affect the company financially. Last we heard, it could potentially cost Samsung a whopping $17 billion in potential revenue had the phones been sold without any incident.
Following the decision to kill off the Note 7 and with the CPSC issuing a second round of recalls for the phone, safe to say that the trust that customers have had in Samsung have taken a serious hit. Granted for the most part Samsung has done a good job with their phones over the years, but this is something that consumers won’t be forgetting anytime soon.
It may surprises some of you guys to learn that despite the many reports of the Note 7 exploding that there are still quite a few users out there who are still holding onto their phones. We’re not sure why anyone would want to take such a risk, but to help incentivize the return of the Note 7 handsets following the official recall, Samsung is offering customers money.