Southwest Airlines on Wednesday evacuated a plane after a
Samsung Galaxy Note 7 began popping and issuing thick smoke. Samsung last month
began replacing Galaxy Note 7s globally, following reports of several of the
devices catching fire or exploding. It blamed the problem on an
"isolated" faulty battery cell issue. The latest incident reportedly
involved a replacement phone
according to owner Brian Green.
Samsung has said it will verify whether the phone
actually was a replacement.
The latest incident throws a pall over the future of the
Galaxy Note series, which had been Samsung's flagship line.
"Wall Street and some retailers might understand
that the problem may not have been created by Samsung, but they will not
care," said Larry Chiagouris, a professor of marketing at Pace University.
"Consumers will certainly care less," he told
TechNewsWorld. "All will hold Samsung responsible for its supply chain --
and as a result, all will now rethink buying anything Samsung."
Samsung officials may "be in denial, since they will
likely view it as not their fault -- but they specified the battery and chose
the suppliers, and they cannot ignore the lingering impact on the Samsung brand
and reputation," Chiagouris said.
No End in Sight
"We are still investigating the Southwest Airlines
944 incident," said Tammy Jones, a spokesperson for the United States Federal Aviation Administration.
"The FAA has issued safety alerts for operators and
advisory circulars advising the airlines that they must have procedures for
fighting these in-cabin fires," she told TechNewsWorld.
The FAA previously issued advisories to airlines and
passengers about the Galaxy Note 7 in response to Samsung's recall.
Meanwhile, the U.S. Consumer
Product Safety Commission has begun looking into the issue, and has
reached out to the FAA and Samsung.
The problem with the Note 7 "may drag on for several
months," said Neil Mawston, a research executive director at Strategy Analytics.
The company "has millions of models in many
countries to replace," he told TechNewsWorld. "Dell's big recall of
millions of laptop batteries in 2006 took around six months."
As smartphones become more complex, product glitches and
recalls will become more common, Mawston predicted. "The iPhone, for
example, was recently accused of 'touch disease' for a display glitch."
The Fiery Fallout
Airlines have begun telling passengers on all flights
that they must shut off their Samsung phones for the entire flight based on
government directives, Chiagouris noted.
"In effect, the entire flying public is being
constantly reminded about Samsung's problems," he said.
Samsung "will have to retire the Galaxy brand and
Note models and introduce new ones to replace them," Chiagouris suggested.
The company also may have to offer longer warranties and rebates to regain
consumer trust.
Samsung has two issues to fix, according to Mawston.
"First, its quality control during design and production needs improving.
Second, it needs better contingency plans for product recalls when things go
wrong. It was caught on the hop by the Note 7 recall."
"Samsung's base is now pretty much gone,"
observed Will Stofega, a research program director at IDC.
The company did its best to get the faulty phoned out of
the market prior to the official recall, but "this problem will likely
hurt their revenue for this quarter," he told TechNewsWorld.
With its recently announced Pixel line, Google "has a
golden opportunity to take market share from Samsung," Mawston said.
Other Android flagship device makers likely will look to
capitalize on Samsung's problems as well, Stofega noted, but the opportunity
will be limited for Chinese phone makers, which face distribution challenges in
the U.S.
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