The Galaxy Note 7 Incident

On September 9, 2016, Jonathan Strobel from Boca Raton, Florida experienced a shocking incident while shopping at Costco. His Samsung Galaxy Note 7 exploded in his front pants pocket, resulting in severe burns on his thigh and thumb when he attempted to retrieve the phone. Just a week later, on September 16, Strobel took legal action against Samsung, coinciding with the company's recall of around one million Note 7 devices in the U.S. The U.S. Consumer Product Safety Commission reported 92 instances of battery overheating, which led to 26 injuries and 55 cases of property damage. This escalation of issues prompted Samsung to announce a global recall in October.

A Promising Start

In 2016, Samsung was enjoying remarkable success, having overtaken Apple as the leading smartphone manufacturer globally. The company was generating excitement with its large-screen devices, releasing enhanced models annually. The Galaxy Note series, which debuted in 2011, initially faced criticism for its size but soon garnered a loyal user base, akin to the iPhone's following. The anticipation for the Galaxy Note 7, designed to replace the Note 5, was palpable. With its 5.7-inch display, advanced features, and stylus, it was poised for success. Pre-orders in South Korea shattered records, and some international launches were delayed due to component shortages.

Launched in August 2016 to rival Apple's iPhone 7 Plus, the Note 7 received widespread acclaim. CNET praised it as "a stunning, capable Android device showcasing Samsung's best in design, battery life, speed, and features."

"This smartphone's 64GB base model offers ample storage for photos, videos, and games. Initially, it was deemed one of the best phones of the year, thanks to its vibrant AMOLED display, excellent camera, and useful S-Pen functionality."

From Excitement to Catastrophe

However, shortly after consumers began receiving their Note 7s, alarming reports of fires and explosions surfaced. Social media quickly spread these incidents, with frustrated users posting videos showcasing their experiences. Samsung, in disbelief, endeavored to identify the issue but struggled to replicate the explosions during internal tests. The initial focus was on batteries from a supplier, yet it became apparent that their own batteries might also be at fault.

In a historic move, Samsung recalled approximately 2.5 million phones just weeks after launching the device. What began as a voluntary recall quickly transformed into a mandatory action. The company aimed to replace defective units with new Note 7 devices featuring supposedly safer batteries. Yet, the issue persisted, and reports of replacement phones also igniting led Samsung to halt production entirely by October.

The Aftermath and Recovery Efforts

With the Note 7 now banned from air travel, Samsung faced a monumental challenge: retrieving all the potentially hazardous devices still on the market. The company launched an aggressive campaign to recover the phones, collaborating with cellular providers and setting up trade-in booths at major airports. Remarkably, within three months, they managed to retrieve over 95% of U.S. Note 7 devices, even issuing software updates to disable remaining units.

Samsung's reputation suffered significantly, with stock prices plummeting more than eight percent, translating to a staggering $17 billion loss in market value. Estimates suggested the company could incur losses exceeding $10 billion due to the crisis.

A Path Forward

While Samsung focused on reclaiming defective phones, it also initiated a comprehensive investigation to understand the root causes of the failures. Their findings pointed to a combination of issues: defects in both Samsung and supplier batteries, inadequate insulation, and batteries that were too large for the devices. Taking full accountability, Samsung committed to a complete overhaul of its quality control processes, introducing a rigorous multi-point battery inspection for future products.

Moving forward with caution, Samsung has successfully launched innovative smartphones, free from the explosion issues that plagued the Note 7. So how did Samsung navigate the fallout from the Note 7 crisis? Despite initial missteps, they ultimately accepted responsibility, learned valuable lessons, and regained consumer trust. Their diversified business model allowed them to weather the economic storm, proving essential to South Korea's economy.

The employees and management at Samsung likely felt immense relief as the episode of the exploding smartphone concluded.

Related Videos

The first video titled "Hacker explains: Why are electronics exploding in Lebanon?" delves into the broader implications of electronics failures.

The second video, "Samsung phones are Blowing Up - Here's Why," provides insights into the specific reasons behind the Note 7's catastrophic failures.

Sources

Chen, Brian X., and Choe Sang-Hun. 2016. "Why Samsung Abandoned Its Galaxy Note 7 Flagship Phone," The New York Times, Oct. 11, 2016.

Moynihan, Tim. 2017. "Samsung Finally Reveals Why the Note 7 Kept Exploding," WIRED, Jan. 22, 2017.

Tsukayama, Hayley. 2018. "How Samsung moved beyond its exploding phones," The Washington Post, Feb. 23, 2018.