HIGH-TECH The Korean giant has launched a recall planetary 2.5 million copies of its flagship product…
batteries explosive that could well cause chain reactions to Samsung. The Korean giant, shaken by the complaints of users of its new “phablet” Galaxy Note 7, some of which have found their device carbonized by a malfunction of the battery, took the bull by the horns by launching a recall on a planetary 2.5 million copies of its flagship product. But this case falls at a very bad time for a group in the midst of a transition of a generation battered by the competition.
consumers dissatisfied with the replacement
Samsung has begun distributing the new Note 7 to half a million consumers in the u.s., and half of 420.000 South Korean who had bought one. But some have complained of delays in the delivery of the new phone.
>> also read : Why it must “immediately discontinue use” of the devices recalled
the Most serious of users, the south koreans would have noticed that the battery of their phone freshly exchanged showed signs of overheating and / or rapid drainage, reports the Wall Street Journal. According to Samsung, it would only be ” isolated cases “, that would be ” under consideration “.
Limit the damage to save his image
Samsung knows that the “bad buzz” can be fatal. And it has struck hard at the beginning of September, when the images of phones blackened have flooded the social networks. A situation experienced as a humiliation supreme by the Korean giant, whose name means ” three stars “, and who wants to be the champion of innovation and quality. “In addition to the material losses, turnover and profitability, the potential damage to brand image and consumer
The competition is tough in the telephony
The crisis could not have come at a worse time for the South Korean, who relied on this model to sustain its growth up to the end of the year in a hyper-competitive market. After the boom years of 2012-2013, Samsung has found itself caught in a vice between the Apple to the top of the basket and chinese competitors as to the lower end of the range.
Despite all this, the company has recorded its best operating profit in two years in the second quarter, thanks to the popularity of its high-end phones. The Note 7 is expected to continue the momentum. The recall underway in 10 countries would cost Samsung to three billion dollars. And financial results could also be adversely affected for months, judge Mr. Roh. Since the end of August, the market value of Samsung has shrunk by $ 15 billion.
The president’s son should inherit the company
This crisis comes at a critical time for a group embedded in a generational transition controversial and observed with attention. Since a heart attack in 2014, the patriarch Lee Kun-Hee is confined to bed. J. Y. Lee, his son, 48-year-old, is widely regarded as his heir likely to the head of Samsung Electronics and the parent company, Samsung Group.
J. Y. Lee was appointed two weeks ago to the board of directors of Samsung Electronics, of which he is the vice-president. But if Lee Kun-Hee is widely credited with having transformed the company into the leader of planetary, her son, very discreet in his rise to power, has everything to prove. “All eyes are on him. The case of the recall could be a crucial test, ” said Wi Pyoung Ryang, an analyst at the Institute for the reform of the economic research, Seoul. “It is a difficult time and crucial to Samsung and its new leader will have bread on the board,” says the analyst.
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