Narrative: Samsung Bungled the Note7 Recall
Each narrative page (like this) has a page describing and evaluating the narrative, followed by all the posts on the site tagged with that narrative. Scroll down beyond the introduction to see the posts.
Samsung Electronics Announces Cause of Galaxy Note7 Incidents in Press Conference – Samsung (Jan 23, 2017)
See the Techmeme link below for full coverage of the press conference by reporters; the full press conference can be viewed here, with the conference starting around 29:30; and there’s some more detail on testing and other elements here. The related narrative has also been updated today to reflect the latest news.
My to-do list for Samsung at this press conference was as follows: demonstrate that the company really had found the root causes of both sets of battery fires, in a way that was credible; where possible have third parties involved; and talk through the changes to manufacturing processes to avoid these issues in future. It checked off each of these items at its press conference, so in that sense it did exactly what it needed to do: so far, so good. On the other hand, the results indicate that the manufacturing processes at Samsung’s battery partners were in some cases pretty shoddy, and that its own designs put pressure on batteries. So it’s not just the battery manufacturers at fault here, and a big part of the problem is lack of quality control –Samsung’s third party investigators were able to find faults in batteries that hadn’t caught fire, and replicate the conditions in which devices caught fire. The big question is therefore why Samsung wasn’t able to do so. All this suggests a lack of care around product testing and likely also a rush to market for competitive reasons which then shortchanged the manufacturing process. I have confidence that Samsung will make big process changes going forward, but less confidence that the culture that led to these problems will change in the same way.
via Samsung Electronics Announces Cause of Galaxy Note7 Incidents in Press Conference – Samsung Global Newsroom (full coverage on Techmeme here)
FAA to Halt Galaxy Note7 Warnings Thanks to 96% Return Rate – Phone Scoop (Jan 11, 2017)
We’re finally coming to the end of this saga, with one of the most visible and painful reminders of the fate of the Note7 going away. Though the 96% return rate likely is a major factor in the decision, the fact that most Note7 devices remaining now won’t charge either thanks to the recent carrier updates is likely another – those who have these phones will find it very hard to do anything dangerous with them. The last remaining chapter in this story is now Samsung’s long-awaited disclosure of the root causes for the fires, and its plan for avoiding similar issues in future.
via FAA to Halt Galaxy Note7 Warnings Thanks to 96% Return Rate (Phone Scoop)
Samsung Electronics forecasts fourth-quarter profit at over three-year high | Reuters (Jan 5, 2017)
These are remarkable results in the quarter after the Note7 fiasco began, and the quarter in which the recall itself really began. Revenues are very close to last year’s, while operating profits are the third highest ever after two quarters back in 2013. We’ll have to wait for the final results to come out later this month to see the breakdown, but the Reuters report makes it sound like both smartphones and semiconductors did well, which would be impressive if it’s true.
via Samsung Electronics forecasts fourth-quarter profit at over three-year high | Reuters
Samsung at CES: Ignore that burning Galaxy Note 7 over there – CNET (Dec 29, 2016)
Shara does a great job here of stating the challenge Samsung faces heading into CES, where it holds the biggest press conference of any exhibitor but tends not to make smartphone announcements. I’m concerned that we still don’t have an official explanation for the Note7 fires, which means the story will keep sticking around, and will keep making people – especially those who’ve never bought one – think twice before buying a Samsung phone.
via Samsung at CES: Ignore that burning Galaxy Note 7 over there – CNET
Apple and Samsung Missed Holiday Smartphone Sales Opportunities, Say Analysts – WSJ (Dec 29, 2016)
Much of this piece piggybacks off the Flurry data I linked to earlier, but there are some additional comments from an NPD analyst which form the basis of the headline. The point here is that Samsung did suffer from the Note7 recall, but not nearly as much as it might have, because most buyers stuck with Galaxy phones rather than switching to iPhone. This reinforces the point that Apple and Samsung (in that order) have the highest smartphone loyalty rates by far, which has certainly helped Samsung this year.
via Apple and Samsung Missed Holiday Smartphone Sales Opportunities, Say Analysts – WSJ
T-Mobile rolls out battery shutdown update to remaining Galaxy Note 7s | AndroidAuthority (Dec 27, 2016)
This is the beginning of the end for the Note7 saga, which began all the way back in early September. The four major US carriers, starting with T-Mobile, are rolling out what are effectively kill updates that will shut down the remaining Note7 devices in use. Over 90% of those devices have already been turned in, so this is really about capturing the holdouts. This is also the beginning of the end for the PR nightmare that’s kept this story in the news far longer than Samsung would have liked.
via T-Mobile rolls out battery shutdown update to remaining Galaxy Note 7s | AndroidAuthority
Galaxy Note 7 recall did not damage Samsung brand in U.S.: Reuters/Ipsos poll | Reuters (Nov 20, 2016)
The actual findings here are more complex than the headline suggests – those who had used Samsung devices tended to be relatively unfazed by the recall, while non-users’ opinions were swayed more, results that have been borne out by other surveys too. In other words, Samsung shouldn’t lose many customers over the recall, but might find it a little harder to win converts.
via Galaxy Note 7 recall did not damage Samsung brand in U.S.: Reuters/Ipsos poll | Reuters
FAA Bans Note7 From All Flights (Oct 14, 2016)
The FAA finally banned all Note7 devices in any state from flights, following earlier partial bans, and mandated safety warnings on all US flights which lasted into January 2017.
Samsung Cuts Q3 Guidance Over Note7 (Oct 12, 2016)
The financial impact of the Note7 debacle began to become clear, as Samsung formally reduced its revenue and profit guidance by several billion dollars (its final results for Q3 would be broadly in line with this guidance).
Samsung Ends Note7 Sales Worldwide (Oct 10, 2016)
Samsung finally announced that it would stop selling the Note7 in all countries.