Samsung’s blunder
Samsung’s recent blunder with the launch of the Galaxy Note 7 and the following recall has already had a huge impact on the company’s quarterly sales, Gizmodo reports. The company announced the approximate total cost of recalling the phone will be around $3 billion, and the net profit loss was nearly 17%. This is the lowest for the company in over six years! It’s not just about the money either- perhaps more importantly, the Samsung brand identity has taken a huge blow from the “exploding phone” recall, since the whole situation has been a PR disaster.
The good news is that the Samsung brand is very likely to survive, according to… Samsung. They also announced an optimistic vision of fourth quarter sales for the year, which project net gains across the board. The writer of this Gizmodo article took a rather skeptical approach to Samsung’s projections of the future after this disaster, but I think the Samsung brand will actually be just fine despite this blow to their reputation. People forget things amazingly quickly when it comes to embarrassing blunders by huge name brands. Remember the time Toyota recalled 4 million cars because they forgot to put working brakes in them? No? Exactly! Brand loyalty and the initiatives companies take to cover up their blunders make large brands almost impervious to completely ruining their brand. I mean, BP is still around after wrecking an entire gulf, so Samsung’s chance for survival is looking good. And after all, Samsung benefits from having an intensely loyal brand fanbase, which when combined with a generally apathetic consumer base ensures Samsung’s survival.
Read the original article here:
http://gizmodo.com/samsung-lost-a-ton-of-money-due-to-exploding-galaxy-not-1788282156
Read the Tweet here:
https://twitter.com/zelias2008/status/791783498294099968












