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Should Samsung discontinue Galaxy Note 7 before its too late?

It will be ambitious of Samsung hoping to recover all the losses with a re-launch.

Samsung launched its flagship in the Note series, the Galaxy Note 7, back in August 2016. Samsung Galaxy Note 7 looked yet another promising device from Samsung until reports started piling up of the device being exploded in various incidents. Initially, Samsung didn't pay much attention but soon as the reports kept coming in Samsung released a statement saying that it has already started the detailed investigation on the issue. Meanwhile, more incidents were coming up with Galaxy Note 7 exploding and damaging property such as Cars, Houses etc.

As a result, Federal Aviation Administration banned the Note 7 on board in most of the flights flying across the United States. Not only in the US, airlines such as Qantas, Jetstar, Virgin Australia and Tiger Airways also issued statements commenting on the issue and reportedly banning the use of the smartphone on board. Soon, Samsung recalled the 2.5 million Note 7 units which were sold in some markets and delayed the launch in other markets, India being one of them. The recall actually costed about $1 billion and Samsung didn't take things easy.

But, now an even more worrying issue is that the replaced Note 7 are also being exploding and reports about the same are increasing day by day. The latest incident happend in the US where a replaced model of Note 7 found emitting smoke in a Southwest Airlines flight from Louisville to Baltimore (Read report here).

So What is really wrong with the Note 7?

Well, it seems like Samsung has been taking a lot risky decisions in this chaos. Though the company claimed that the issue has been completely resolved which was reportedly in the battery, it seems like the issue still persists and this time Samsung cannot afford to take a wrong decision. So should Samsung discontinue the Note 7 completely?

First things first, the most affected area due to such issues is the reputation of a company. Samsung has been a leader in smartphone industry across various markets including India and it is that one company which is believed can beat Apple but after this whole havoc pertaining to Note 7, the results have not been favorable at all. Recent study have also shown how Samsung is struggling to sell its other devices which previously were doing really well. Further, Reputation degradation can go a long way. For instance, Flipkart's famous exchange program offer doesn't have Galaxy Note 7 in the list which means if you own a Note 7, you can't exchange it for another device atleast on Flipkart.

Galaxy Note 7

Adding to this are the competitors such as iPhone 7 and Google Pixel. Galaxy Note 7 has still not been launched in India, While, Apple iPhone 7 is all set to launch tomorrow and Google Pixel in the coming weeks (20th October). So the launch of these two would mean that Samsung will further lose their Note series fan base. For example, Amitabh Bachchan recently tweeted if he should return his Note 7 for a refund. So Apple launching the iPhone 7 and Google launching Pixel will only make things worse for Samsung. People now think twice before buying a Samsung device.

Moreover, some reports reveals that Samsung took a gamble releasing a half baked smartphone in the quest of launching it before Apple launched the iPhone 7. This might be true given the number of issues Note 7 is facing. Not only this, replaced Note 7 units being exploded has just added more salt to an already disastrous wound. In addition to this, replacing Note 7 will only increase the overall cost. So, Should Samsung completely wipe off Note 7 ?

In our opinion, given the fact that replaced Note 7 are also exploding, it will be best for Samsung to discontinue the Note 7 before it is too late. Late in the sense as more and more flagships are released, it will be more difficult for Samsung to sell the desired number of units of Note 7. So this move would actually be a Precaution for further chaos than Resolving the current damages and losses. It will be ambitious of Samsung hoping to recover all the losses with a re-launch. Else, relaunching or even launching the device in some markets late this year wouldn't make much sense as festive season would have already over by then and Samsung will eventually fail achieve high numbers.

First Published : Friday, October 07, 2016 - 09:46




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