What are Samsung’s options now? Less than two months after the launch of what was supposed to be this year’s best smartphone, production of the Galaxy Note 7 has permanently ceased.
This followed a spate of separate battery explosions, resulting in the devices catching fire. In one high-profile incident – which happened on a plane – smoke was emitted inside and passengers to be evacuated.
What made that story even worse for Samsung was the fact it was a replacement phone that had been to blame. This was a replacement that had been deemed safe by the company.
Analysts are now waiting to see how Samsung reacts to the crisis, particularly because the company no longer has a flagship phone for 2016. It is going to have to rely on its S7 Edge to keep buyers interested until it can release a new device.
Samsung has told the BBC that it will be adding features to its S7 and S7 Edge models. Many are questioning whether this will be enough to maintain sales when Apple has launched its latest iPhone and Google has come out with its own well-received Pixel.
The competition is stiff and though Samsung has a dedicated and loyal customer base, there are people who will be tempted by a great new smartphone. There are good deals for new phone buyers so what can Samsung do to stay competitive?
In a statement, Samsung said: “We have issued a software update delivering certain feature enhancements to the Galaxy S7 and S7 Edge, which offer a more convenient and customisable mobile experience.
This may be the company’s best chance of maintaining buyers’ interest when there are newer phones on the market.
Amongst the first changes to be made is the inclusion of the ‘always-on display’. The concept was first introduced with the Galaxy S7 but failed to fuller deliver on its promise, according to a number of analysts.
The Note 7 – during its short life – managed to improve on it and offer users the chance to see all notifications when looking at the screen. This update has yet to be introduced in Europe, however, and some tech experts have said that some bugs must still be ironed out.
BGR.com predicted that Samsung will not release a Samsung Galaxy S8 Note after the troubles experienced with the Note 7. This could put back the development of new smartphones, which could keep the firm out of the market for longer than they would like.
Samsung will be suffering a hit to its reputation, which could end up causing it real problems in the long run. QZ.com said it could end up losing $2.3 billion (£1.9 billion) as a result of the recall and the subsequent end of production.
With the problems for Samsung seemingly piling up and huge amounts of money at stake, it remains to be seen in which direction the company will go.