A second recall would essentially be a big hit to company's reputation as well as revenues.
Two former US Safety officials have revealed that Samsung could be forced to recall the Galaxy Note 7 again in coming days if it is proved that the Note 7 which reportedly emitted smoke on the Southwest flight is a replaced unit. Though the owner of the replaced unit that found emitting smoke (Brian Green) claims that the product was a replaced unit, the Federal Aviation Administration and the Consumer Product Safety Commission are investigating the incident.
Earlier this week Brian Green was travelling on Southwest flight travelling from Louisville to Baltimore when his phone reportedly started emitting dense green and grey smoke which was later taken care of by a flight attendant. The plan was evacuated immediately post the incident.
"If it's the fixed phone and it started to smoke in his pocket, I'm going to guess there'll be another recall," Pamela Gilbert, a former executive director of the consumer agency, was quoted as saying.
Samsung first recalled the device last month when it claimed to replace the 2.5 million phones it already sold. Also, this Friday Samsung will release its earnings which is expected to be the growing slowest in the last five quarters.
A similar event occurred in China when a user claimed that his Note 7 exploded within 24 hours of delivery. He also claimed that the device was a replacement and safe as deemed by Samsung.
Nancy Nord, a former acting chairwoman of the safety commission, "Certainly they could do another recall, if it appears this is something beyond an aberration, They need to determine id this was a re-mediated phone, and if so why did this happen?" She also believed that a second recall is very rare.
If Samsung is forced to make a second recall, it will be an even a bigger crises for the company. A second recall would essentially be a big hit to company's reputation as well as revenues. Meanwhile, Samsung other smartphones are also being affected by this whole Note 7 crisis. Recent study have revealed that Samsung is struggling to make huge sales in other price bracket as well. Further with the competitors like iPhone 7 and Google Pixel in the premium range and Xiaomi and Motorola in the budget range, things are bound to get difficult for the South Korean giant. From the leader in smartphone industry to a questionable smartphone manufacturing company, it will not be an easy ride. Samsung is yet to launch the device in India and earlier this month reports suggested that it would do so sometime near Diwali. Nevertheless, if you own a Note 7, we recommend you to get the refund instead of the replacement and if later the replaced units are reported to be safe then you can buy the product again.
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