How

dealt with the crisis of

explosion
 GALAXY
1. Overview

2. Samsung’s reaction

3. Customer’s attitude

4. Q&A

I’m going to talk about…

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Overview

Next generation of the Note series

Launch day: August 19, 2016

Galaxy Note7
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Overview

Next generation of the Note series

100,000
Launch day: August 19, 2016
Galaxy S7
(previous device)
A hit to the market 200,000
Galaxy Note7
*units

Galaxy Note7 Pre-orders within 2 days

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 Within the 2 first week

Initial reports
The Note7’s battery EXPLODED

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 Initial reports
The Note7’s battery EXPLODED

First guess: unusual heat generating inside the device

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 Initial reports
The Note7’s battery EXPLODED

Unfortunately, it spread WORLDWIDE

→ Note7 was banned at many places

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What did do?

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What did Samsung do?

Product launch
Pre-order

2016 AUG ⚫ 19 ⚫ 31 ⚫
SEP ⚫ 2 ⚫ 15 ⚫ OCT ⚫
10 ⚫ 11
What did Samsung do?

2016 AUG ⚫ 19 ⚫ 31 ⚫
SEP ⚫ 2 ⚫ 15 ⚫ OCT ⚫
10 ⚫ 11

Shipment delay
for “additional tests”
What did Samsung do?

Informal recall

2016 AUG ⚫ 19 ⚫ 31 ⚫
SEP ⚫ 2 ⚫ 15 ⚫ OCT ⚫
10 ⚫ 11

Product recall: a request from a manufacturer

to return a product after the discovery of
safety issues or product defects that might
endanger the consumer or put the
maker/seller at risk of legal action.
What did Samsung do?

2016 AUG ⚫ 19 ⚫ 31 ⚫
SEP ⚫ 2 ⚫ 15 ⚫ OCT ⚫
10 ⚫ 11

Official recall
Product recall: a request from a manufacturer Exchange new version
to return a product after the discovery of
safety issues or product defects that might
endanger the consumer or put the
maker/seller at risk of legal action.
What did Samsung do?

Stop manufacturing
& distributing worldwide

2016 AUG ⚫ 19 ⚫ 31 ⚫
SEP ⚫ 2 ⚫ 15 ⚫ OCT ⚫ 10 ⚫ 11
What did Samsung do?

2016 AUG ⚫ 19 ⚫ 31 ⚫
SEP ⚫ 2 ⚫ 15 ⚫ OCT ⚫ 10 ⚫ 11

Second recall
Force users to return device
Customer’s
attitude
Customer’s attitude
Debate among users
However, it was a hard time for Samsung

$3.72b
$3.42b

$2.41b $2.43b $2.11b

$1.96b

$0.09b

Q1 Q2 Q3 Q4 Q1 Q2 Q3
2015 2016
Samsung’s mobile profits
he end for