Recalls

Samsung Phone Recall

Samsung says roughly half of affected Note 7s have been exchanged in US.

The Verge (9/23, 963K) reports Samsung announced that “about half” of the recalled Galaxy Note 7 phones sold in the US have been exchanged for new phones. The Verge says Samsung has been criticized for “mishandling the recall” by failing “to engage with US regulators.” Some customers have also reported challenges trying to return their Note 7s. This week on The Verge (9/22, 963K) “Ctrl-Walt-Delete” podcast a major theme is: “Did Samsung Bungle The Note Recall?”

Samsung getting Note7s back in stores before end of Q4 in Europe. Reuters (9/22, Auchard) reports Samsung expects to resume sales of its Note7 in Europe before the end of the year, but says it could be 2017 before the company recovers from the recall. David Lowes, Samsung’s chief marketing officer in Europe, said “We fully expect (new Note7s) to be available everywhere by the end of November … well before the end of the fourth quarter.”

Samsung turns around crisis management now that recall is under way. USA Today (9/22, Swartz, Weise, 6.42M) reports that Samsung’s current “crisis management” since the official recall began has offered a “playbook on how to effectively handle a recall,” despite the company’s earlier missteps, which were “criticized as slow” and leading to consumer confusion. USA Today notes Samsung’s current response includes “an outreach and exchange program” consisting of “promoted tweets, newspaper ads, the Samsung+ app, emails to customers, a special website and 800 number, and search-engine marketing to prod owners to handing over possibly dangerous devices,” as well as a software update that alerts owners of defective devices on their phone screens. US Consumer Product Safety Commission senior adviser Scott Wolfson even said “Samsung has been more transparent than the average company is for this recall.” USA Today adds analysts expect the public relations hit to “be temporary, because Samsung is a respected smartphone maker” with a broad customer base.

The Wall Street Journal (9/22, Gallagher, Subscription Publication, 6.37M) reports that even with the damage done by the Note7’s battery issues, it will still not be a boon to Apple’s iPhone sales. The Journal notes that users do not often jump between operating systems, adding that while the iPhone 7 is expected to have strong sales that is almost entirely from previous iPhone owners upgrading their phones.



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