Samsung Cancels Note 7

Photo Courtesy: John Biehler/Flickr.

Hugo Fonck/Correspondent

Following widespread reports of “safe” replacement Galaxy Note 7 devices catching fire in the US, this past week Samsung officially recalled all devices and ceased production of the Note 7 immediately.

Currently, Samsung is still in the process of determining what is causing these fires to occur.

Further adding to the fire was the decision by the FAA to ban all Note 7’s on airline flights as the number of overheating incidents approaches 100.

Effective noon on Saturday, Oct. 14, Galaxy Note 7’s must be confiscated at airport security and will not be allowed on the aircraft; trying to sneak one on could lead to fines and even prosecution.

Many, including myself, are praising Samsung’s decision to kill the Note 7, with most citing the fact that despite an expected $3.1 billion loss from the product, Samsung is taking a move to save the company and its brand instead of letting the phone sink them.

The company hopes that it will be able to slowly move on from this debacle and begin to win over the public’s trust again with future phones.

To add to that, the company is being deliberately discreet in the media, purposefully announcing the product cancellation during the middle of the second US Presidential debate – an event that distracted all major media for an extended amount of time.

From a technological standpoint, this event has illustrated the dangers of trying to innovate too quickly, where design flaws can go unnoticed. But from a business standpoint, Samsung is focusing its effort flawlessly at pushing through this situation, despite the expected social and financial setbacks.

Samsung is undoubtedly going to survive this scandal and will continue to be a significant player for many years, with its crisis management capabilities mastered and its product development capabilities stronger than ever before.