At the start of last week, everything was going great for Samsung’s mobile division. The Galaxy Note 7 was picking up critical acclaim from the media, sales were passing the two million units mark, and long-time rival Apple was vulnerable thanks to the zero-day malware hack and reports of design issues with the iPhone 6 and iPhone 6 Plus.
One week later Apple’s teflon-coated reputation remains intact as it marches towards the triumphant launch of the ‘just like last year’s phone with a bigger number’ iPhone 7 as Samsung faces an embarrassing recall of potentially explosive Galaxy Note 7 phablets and the resulting damage to its reputation and finances.
Samsung Galaxy Note 7 (Image: Samsung Press)
Samsung confirmed the issue last week. The issue with overheating and exploding batteries made headline news in the world’s media (and Forbes’ contributor JV Chamary discusses the ‘why’ here). After taking action, Samsung is now facing calls that the recall is not ‘official enough’, with Consumer Report noting that in its opinion the offer to replace units and a voluntary stop on sales falls short of US regulations:
Recommended:
Irrespective of the process the South Korean company has decided to employ, the Galaxy Note 7 issues have been labeled a ‘recall’ in the mainstream media and that reputation will now be shackled to the Note 7 for the rest of its productive life.
Samsung Mobile chief DJ Koh has been playing an aggressive but sound tactical game in regards to hardware releases since he took over the division in December 2015. By bringing the launch date of the Note 7 forward to early August, he duplicated the successful moves made to launch the Galaxy S7 and S7 Edge – more of the initial sales of the devices would features in the Q3 (and Q1 for the S7) earnings reports, there would be ‘clear air’ between the reveal of the produce and the next major handset announcement from a competitor, and it allowed Samsung to be seen as the ‘innovator’ in the current product cycles.
With the early launch of the Galaxy Note 7, Koh was looking to establish the Note 7 as the leading phablet of its generation, forcing the industry to make a direct comparison of the Note 7 to the iPhone 7 Plus, and subtly leaning on a message of cutting edge features and significant processing power to counter Apple’s emotional appeals to the public.
Now the comparison is easy, because I’ll put a few dollars down on the table that Phil Schiller - at some point on Wednesday - is going to wink at the audience and throw out a well-rehearsed and scripted “this phone doesn’t burst into flames” line.
Apple’s WWDC 2016 (image: Getty)
Meanwhile, Apple dodged two bullets amid its careful build-up to the iPhone 7 event this Wednesday. The zero-day exploits that could lead to the installation of malware and spyware on an iPhone was quickly patched as part of iOS 9.3.5, while reports of a design flaw in the soldering and fixing of the touchscreen integrated controller chip never picked up enough traction to be a PR issue.
Unlike #bendgate, the follow-ups to these stories in the media have been diluted by all the ‘what is Apple planning for Wednesday?‘ stories. Without that momentum the two stories barely made two news cycles and then fell off the agenda (what attacks there have been on Apple have been over the removal of the headphone jack, something that the media has been crying on about for two years).
Samsung Galaxy Note 7 (Image: Samsung Press)
This week Samsung Mobile is facing down a huge number of issues that have derailed the smooth launch of the Galaxy Note 7. These will be noticeable in its Q3 earnings report and could threaten the company’s return to growth. It’s hard to see how Samsung can turn around its fortunes in the smartphone market over the next few months. Meanwhile Apple has faced two dragons and slayed them with ease. Cupertino’s army is ready to bring out a fresh legion of horse to go into battle, safe in the knowledge that its armour is strong and intact.
One week later Apple’s teflon-coated reputation remains intact as it marches towards the triumphant launch of the ‘just like last year’s phone with a bigger number’ iPhone 7 as Samsung faces an embarrassing recall of potentially explosive Galaxy Note 7 phablets and the resulting damage to its reputation and finances.
Samsung confirmed the issue last week. The issue with overheating and exploding batteries made headline news in the world’s media (and Forbes’ contributor JV Chamary discusses the ‘why’ here). After taking action, Samsung is now facing calls that the recall is not ‘official enough’, with Consumer Report noting that in its opinion the offer to replace units and a voluntary stop on sales falls short of US regulations:
Recommended:
If Samsung was initiating the recall process, its first step would be to immediately report any issues to the CPSC. According to the Consumer Product Safety Act, two of the criteria for reporting are if the product “contains a defect which could create a substantial product hazard,” or “creates an unreasonable risk of serious injury or death.” The CPSC would then evaluate these reports and determine if corrective action is required. The agency also works with companies to determine the scope, hazard, and remedy, and makes recommendations.
Irrespective of the process the South Korean company has decided to employ, the Galaxy Note 7 issues have been labeled a ‘recall’ in the mainstream media and that reputation will now be shackled to the Note 7 for the rest of its productive life.
Samsung Mobile chief DJ Koh has been playing an aggressive but sound tactical game in regards to hardware releases since he took over the division in December 2015. By bringing the launch date of the Note 7 forward to early August, he duplicated the successful moves made to launch the Galaxy S7 and S7 Edge – more of the initial sales of the devices would features in the Q3 (and Q1 for the S7) earnings reports, there would be ‘clear air’ between the reveal of the produce and the next major handset announcement from a competitor, and it allowed Samsung to be seen as the ‘innovator’ in the current product cycles.
With the early launch of the Galaxy Note 7, Koh was looking to establish the Note 7 as the leading phablet of its generation, forcing the industry to make a direct comparison of the Note 7 to the iPhone 7 Plus, and subtly leaning on a message of cutting edge features and significant processing power to counter Apple’s emotional appeals to the public.
Now the comparison is easy, because I’ll put a few dollars down on the table that Phil Schiller - at some point on Wednesday - is going to wink at the audience and throw out a well-rehearsed and scripted “this phone doesn’t burst into flames” line.
Meanwhile, Apple dodged two bullets amid its careful build-up to the iPhone 7 event this Wednesday. The zero-day exploits that could lead to the installation of malware and spyware on an iPhone was quickly patched as part of iOS 9.3.5, while reports of a design flaw in the soldering and fixing of the touchscreen integrated controller chip never picked up enough traction to be a PR issue.
Unlike #bendgate, the follow-ups to these stories in the media have been diluted by all the ‘what is Apple planning for Wednesday?‘ stories. Without that momentum the two stories barely made two news cycles and then fell off the agenda (what attacks there have been on Apple have been over the removal of the headphone jack, something that the media has been crying on about for two years).
This week Samsung Mobile is facing down a huge number of issues that have derailed the smooth launch of the Galaxy Note 7. These will be noticeable in its Q3 earnings report and could threaten the company’s return to growth. It’s hard to see how Samsung can turn around its fortunes in the smartphone market over the next few months. Meanwhile Apple has faced two dragons and slayed them with ease. Cupertino’s army is ready to bring out a fresh legion of horse to go into battle, safe in the knowledge that its armour is strong and intact.
No comments: