Just as quickly the Samsung Note 7 was released, within only about two months the phone has shockingly been discontinued. On Tuesday October 11th 2016, Samsung finally announced the total shut down of Samsung’s Galaxy Note 7 sales and production. It all started when Note 7’s started to explode unexpectedly in users cars, homes, and even pockets all over in different countries everywhere. Within about two weeks of these first incidents, Samsung declared a recall and worked with carriers to come up with a temporary solution.
Although Samsung sought to keep their reputation and tried to correct their mistakes as courteous as they could with replacement devices, reports of of Note 7’s exploding were not dying down at all. Samsung was under the pressure with reports in the media and news. This was intensified when subway organizations, United States officials, and airlines started to step in and started warning users everywhere about the dangers of the Note 7.
After a 2.5 million recall of Samsung Galaxy Note 7, shareholders seemed to just shrug off the problem, and numbers seemed consistent, but that quickly changed. In early October, reports started to emerge that Samsung replacement devices were also exploding. Within days there were at least four other reports of these replacements exploding. It was the final straw for Samsung, and it’s what lead them to make their ultimate decision. On October 11th, Samsung asked all Note 7 users to immediately stop using their original devices and their replacement devices. They announced they would permanently stop all production and sales of the Galaxy Note 7.
This is a great loss for Samsung with a total of 17 billion lost from the company’s total value, equaling about 7.5% down in shares. The irony is that the Note 7’s battery was actually one of its best features with producing a full charge in just 30 minutes. Some analysts have come to the conclusion that because Apple was releasing their iPhone 7 and Samsung is usually first to release the next smart device, that they simply rushed.
With Samsung relying solely on just two battery companies for all of their battery inventory, and receiving the majority of their batteries from just one of those two, it’s what caused the downfall of the Note 7. Compared to Apple who has multiple battery supplier companies, and neither provides nearly half of Apple’s total battery stockpile, giving them various options if one ever failed. Analysts ran a poll on Samsung Note 7 owners with 34% saying they would not purchase another Samsung device. There’s a chance Samsung might eliminate the Galaxy all together and not produce a Note 8 to start creating a total new smart device.