How to save the brand image after the Samsung Note7 explosion?

In the past year, Samsung Electronics has undoubtedly faced the biggest test in history. Due to the frequent explosion of mobile phones in the global market, Samsung is caught in the whirlpool of "explosive doors."

Samsung wants to save the brand image by publishing the results of the Note7 battery explosion investigation?

For the cause of the explosion of the Note7 mobile phone, Samsung said it has been under investigation. Five months after the first "explosion door" incident, a recent source revealed that the Samsung survey results in battery manufacturers rushing to increase production and causing manufacturing problems.

Samsung Electronics said that since the incident, Samsung has conducted an in-depth investigation into the Burning accident of Note7 battery, and the investigation found that lithium battery is still the main cause of burning and explosion of Note7 mobile phone. It is reported that the incident will cause Samsung to lose more than 5 billion US dollars in profits, while its global sales of Samsung mobile phones fell sharply last year.

A person close to Samsung revealed: "At present, Samsung is accelerating the research and development of new mobile phones. Samsung hopes that the new model mobile phone will be available, and hopes that the mobile phone explosion will soon pass, and reshape the Samsung mobile phone brand image."

Is the phone explosion caused by a battery defect?

The Samsung "explosion door" incident has been fermented for five months, and Samsung is still investigating the specific cause of the accident.

A source said: "The real reason for the explosion of the Samsung mobile phone is that the battery size does not match the battery compartment and there are manufacturing defects, causing the battery to overheat and the mobile phone to explode."

In this regard, Samsung China related person said: "South Korea's Samsung will soon hold a press conference to explain this reason. The follow-up issues will be followed by China."

The explosion of Samsung Note7 mobile phone was released in the market last year. Since then, this type of mobile phone quality accident has exploded around the world. Samsung initiated the recall process and announced a permanent suspension of the phone. This is the biggest recall event in the history of Samsung Electronics, and it is also the biggest test it faces.

Samsung has not been conclusive about the reasons for the explosion of this mobile phone. The insiders also said different reasons for the explosion of the model phone. In addition to the lithium battery is suspected to be the cause of the explosion of the phone, more Korean experts believe that the internal components of the phone, design problems or the main cause of the explosion.

At the beginning of January this year, Samsung Electronics said that it would soon introduce the results of the investigation on the Burn7 battery burning accident. Although the official has not officially disclosed, it has recently been reported that Samsung’s investigation results show that lithium batteries are still the main cause of the burning and explosion of Note7 mobile phones.

Recently, Samsung officially announced that it will officially announce the results of the investigation of the Note7 smart phone "Flipping Machine Door" on January 23, and express its determination to restore consumer confidence.

A source said that a survey of Samsung's Note7 smart phone battery showed that the defective battery exploded and prompted Samsung to recall all of the phones because some of them were out of size. There are manufacturing problems with the battery.

It is reported that Note7's battery is provided by its subsidiary Samsung SDI and Hong Kong New Energy Technology Co., Ltd. According to sources, the defects in batteries supplied by Hong Kong New Energy Technology Co., Ltd. are mainly related to a manufacturing problem caused by the rapid increase in production of replacement machines.

Can it reshape the brand image?

However, regardless of the results of this investigation, Samsung has suffered at least $5 billion in losses due to this incident.

In July last year, Samsung announced its second-quarter profit hit a new high in the past two years, thanks to strong sales of the flagship Galaxy S7 pushed up Samsung sales and profit margins. In the third quarter of last year, affected by the Note7 incident, Samsung Mobile's operating profit was only 100 billion won, a 96% drop year-on-year. In October, Samsung announced that Note7 has been discontinued, and said that in the future, the mobile phone business will be normalized by expanding the sales of Galaxy S7 and Galaxy S7edge. At present, Samsung is vigorously promoting the promotion of the Galaxy S8 mobile phone.

A person close to Samsung said: "The sales of Samsung mobile phones in the world are indeed affected, but Samsung is accelerating the research and development of new products to face the ever-changing mobile phone market as soon as possible. Samsung's new products will still be positioned at the high end and establish a new brand image as soon as possible."

Samsung said the company will adopt new measures in its subsequent new machine manufacturing and design process to avoid any such failures in the future.

However, it is clear that Samsung mobile phones will face challenges if they want to rise rapidly. The data shows that the growth rate of global smart phone shipments has slowed sharply, and last year's growth was less than 1%. At the same time, Samsung's market position has also been impacted by domestic brands such as Huawei, Xiaomi and Meizu from China.

In order to avoid relying too much on the impact of the mobile phone business, Samsung began to seek to expand the chip and display panel production capacity. In recent years, Samsung has invested tens of billions of dollars in semiconductor and display panel business to consolidate its dominant position in the field of electronic components. At the time when Samsung's mobile phone suffered an "explosion event", Samsung Electronics' operating profit in the fourth quarter of 2016 increased by 50% year-on-year, and the upstream parts business such as panels and chips contributed greatly and became the profit growth point of Samsung Electronics.

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