Tuesday, October 11, 2016

Samsung fold mobile phones that catch on fire do not burn more brand – Audience.en



it Is difficult to imagine a potato-the hottest in the hands of a brand mobile phones than devices that can ignite in the hands of users. After a month and a half that would be a nightmare for any consumer brand – videos for mobile phones burnt, complaints on social networks, countless negative news, the prohibitions on the part of airlines – the Samsung took a decision drastic: it stopped the production of Galaxy Note 7, is to withdraw it from the market and appeals to customers to switch off the equipment and simply stop use. It is asking quite a lot to those who just paid over 800 euros for a top of the range model announced with pomp and circumstance at the beginning of August.

in A note issued on Tuesday, Samsung explains that "the safety of consumers remains the main priority" and that will, therefore, "ask of all the operators and partners of retail at the global level to stop the sales and exchanges of the Galaxy Note 7". The company adds that it is working with regulators "to resolve the situation". In another press release, sent to the financial regulator of Seoul, the company announced the "final decision" to stop the manufacture of the model.

In Portugal, the launch, which was scheduled for the past month, it ended up not being done. But there were those who bought the devices during the period of pre-sale (Samsung says that the equipment available has been exhausted), which led to that, as in other countries, was starting a trade-up program. There are, however, who is to complain in the social networks have already paid for the phone and neither have the instrument, or company news. The PUBLIC has contacted the Portuguese subsidiary, who said he was yet to ascertain the issue and deferred further clarification for this Wednesday.

The case will inevitably have an impact on the accounts of a multinational. In addition to the appliances that will be left to sell, the pickup operation of the mobile phones, as well as the replacement with other models and the repayments, are going to cost a lot of money. Only in sales are not implemented, analysts at Credit Suisse estimated that the bill could be around 15 billion euros. This will add-if the communication expenses to contain the damage and eventual advertising to sustain sales of the remaining mobile phones. Already the damage to the brand and reputation of a company that manufactures all sorts of electronic appliances (including refrigerators and washing machines) will be more difficult to count.

"This has always damage. It was one of the main products of the brand in Europe and the U.S., and who purchase this type of product is a loyal customer to Samsung," says Francisco Jeronimo, an analyst at the consultancy IDC in London.

The family of mobile phones Note has no weight in the range of Samsung. Are models that feature a large screen and the launch of the first generation, in 2011, was important in the competition with Apple. Drove a new category of smartphone and led to the other manufacturers – Apple included – stop by to make market models with screens larger than was hitherto usual. According to figures from IDC, the Note came to represent, there are two years, 12% of all smartphone sold by Samsung. However, in the past year, this share had fallen to 7% and in the first six months of 2016 stood at 4%. "It was a category [of the phone] that it took some time to be copied by others. This gave them plenty of renown," recalls Jerome.

The analyst from IDC believes that one of the big problems was the fact that the phones delivered to customers to replace models bad also have the same flaws. "The only solution was to take the product from the market and were relatively fast", he considers.

Not so quick, however, to avoid the burden of the news with cases of appliances in flames. In the us, a plane was evacuated when a Note 7 began to smoke. Lots of screens with the safety instructions of the flights began to say to the passengers that they could not use the phone or that they had to inform the crew members if they travel with one.

The security warnings in the aircraft were a situation that Carlos Coelho, president of Ivity, a management company of brands, to be particularly problematic for Samsung. "I can’t remember seeing a mark to be placed as a security issue in a company area," he says. “Not assessed correctly the speed of this.”

However, for Carlos Coelho, the manufacturing defect does not affect the "pillars deep" from the brand Samsung, contrary to what happened with Volkswagen, where it was a fraud. "In the case of Volkswagen, it is a mistake to nasty. Here is a production error, which is serious, but that happens in many other products." Rabbit explains that the best way to resolve these crises is to "stop the situation", which implies "to embrace, explain and resolve the matter" – something that, say, Samsung still has not managed to do properly. The company has not yet detailed the problem, having assigned the failure to a defect in batteries produced by a subsidiary and that warmed up too.

Now Francisco Jeronimo, IDC anticipates that the impact to the mobile phones of the brand’s south Korean will depend, in part, how this relate with the customers. And argues that this will need to be more receptive to the complaints. "The impact on the brand itself, which is the main risk, will depend on how the company treats customers, not only this phone but other products, notably the level of damage and repairs. You will need to have more flexibility to accept complaints of a product with which the customer is not satisfied."

The analyst, however, considers that in the medium term there will be no impact on demand. "They will now have to invest some money to pull in sales. Not for people to be disgruntled, it is because they think 'I’m not going to risk it'. If the issue is resolved, people will continue to buy the brand".

LikeTweet

No comments:

Post a Comment