Samsung’s nightmare continues as stock market shares plummet to an all-time low due to the recall of its fire-prone Samsung Note 7. The sales drop is now threatening the release of the much-awaited Samsung Galaxy S8.
The crisis started after the launch of Samsung’s Galaxy Note 7 merely a month ago. Immediately after the release, consumers reported incidents of over-heating, with some phones even catching fire.
The company quickly issued a voluntary recall, offering a replacement device or full refund of the units resulting to an estimated loss of 5 Billion won, analysts predict. To make matters worst for the company, airlines from several countries including the US, Australia, UAE and the Philippines have ban the Samsung Note 7 from flights due to the issue, reports IBTimes.
Upon investigating the cause of overheating and explosion, Samsung “found a battery cell issue.” Despite the recall, Samsung said that there had only been 35 reported cases from the 2.5 million phones produced, Forbes shares.
But revenue loss is not the only major problem of the tech giant. Samsung now struggles to regain the trust of consumers in the brand itself.
According to a Fox News interview with IDC vice president of device research, Bryan Ma, “The impact to its brand is spreading where other Samsung phones – regardless if they are Note 7’s or not – are now becoming guilty by association,”
Samsung Galaxy S8 Release Date Cancelled?
With Samsung’s credibility marred, the release of the highly-anticipated Samsung Galaxy S8 is also in question.
The company has yet to officially announce the Samsung Galaxy S8 release date, including its specs and price. Rumors predict the brand will be launching its flagship phone by 2017, specifically around the months of February and March. It usually launches new Galaxy S models that time of the year. As to whether or not this year will follow the trend, nobody is certain.
For now, Samsung’s major focus is to gain back consumer trust and brand credibility, take responsibility for the incident and ensure costumer.