The Samsung Galaxy Note7 exploding battery issue has cost the South Korean tech giant big time. However, after a false start, and rigorous compliance testing by Samsung and all manner of global authorities, it is returning to sale.
The Note7 first returned in its home country, South Korea, on 1 October, and it is rolling out in major markets worldwide over the next fortnight. The US was next from 5 October. Australia is “any day now”. The company's priority is not new sales but the replacement programme for the 2.5 million devices already sold.
But there is a small catch. Existing Note7 users are so attached to them, regardless of risk, that they continue to use the devices. Interestingly, as Samsung issued an official world-wide recall on 2 September, continued use is at the owner’s risk. Samsung has also issued a firmware update to stop fast charge at 60% and this seems to have given owners a false sense of security. If users do not pay heed to warnings, the final step will be to disable network access.
Indications from mobile device intelligence company Apteligent are that the recall has a long way to go. It recently estimated that as few as 13% had stopped using the device two weeks after the recall was announced. Samsung has indicated that about 1 million units had been exchanged so far.
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Apteligent says that while the Note7 battery issue may have slowed sales, it did not send users running to Apple's iPhone 7 or Plus. Instead, the LG G5 (with its removable battery), the Samsung S7/Edge, and the Nexus 6P benefitted from an “unusual upsurge in sales from 3 September onwards".
Its analysis of Android devices sold in Australia is most interesting. Samsung holds, by volume of sales of each device, all of the top 10 spots with the last year's GS6/Edge/+ at 8.47%, GS7/Edge at 6.33%, GS5 at 6.23% and GS4 at 4.38%.
Interestingly the Note series (3, 4, 5 excludes 7) are at 10.35%. This shows the value of a niche market product — the Note series has larger screens and an S Pen — with little competition.
The new Note7 has three specific software changes to indicate it is “safe” – a green battery icon that’s visible on the Status Bar, the Always On Display screen, and the Power Off prompt screen. The visual indicators have satisfied airline regulators and inflight use and charging will be allowed. Additionally, the new packaging has a square symbol on the label.
Comment
Samsung have done an excellent job of quickly managing a very “explosive” situation. As a PR/marketing veteran, I would give it an 11 out of 10 for its quick, positive and decisive action. Its recent “Shonky” award from CHOICE is solely about “entertainment value” — taking the piss out as Aussies say — than the excellent product itself.