An estimated $17 billion loss was the result of Samsung's Galaxy Note 7 fiasco, where Note 7 devices were reported to inexplicably explode.
The prolonged affair has put the company in dire consternation, fumbling hither and thither to administer a recall program for the exploding Note 7 units. Yet, the program proved to be a failure caused by still-problematic replacement units.
The hastened version of the disaster concludes with Samsung officially pulling the plug on Note 7 production, essentially declaring it dead forever. In an attempt to rejuvenate its brand, Samsung has chosen to move forward, ramping up production of its other flagship smartphone, the Galaxy S7.
Confidence in Samsung is at an all-time low, and despite the Galaxy S7 being in perfectly good shape and a fine candidate for a Note 7 replacement, consumers are reasonably veering away from the brand for now. Samsung knows the best course of action would be to revive and sustain consumer loyalty to its own brand, if it wants to recover from the massive loss.
Now, it's been reported that Samsung is currently investigating the Note 7 situation, trying to figure out what exactly went wrong in the production of the devices that caused them to randomly combust without warning. According to Business Insider, Samsung is expected to elucidate findings from the investigations in the coming weeks, citing a spokesperson.
"We're currently conducting a thorough investigation, and it would be premature to speculate on outcomes. We will share more information in the coming weeks," according to the spokesperson.
There's no clear explanation as to why the Note 7 behaved the way it did. The replacement units were a short-lived stroke of hope for the company, as even those were found to have been just as rife with problems as the original problematic units. Samsung claims that the replacement phones come with a battery from a different manufacturer, though it doesn't confirm whether that's the reason why the units resumed the problems.
"The replacement phones have batteries from a separate and different supplier than the original Note 7 devices," according to the spokesperson. Many have speculated that exploding Note 7 units were simply the result of a faulty design and possibly flawed engineering.
"We are working around the clock to analyze the causes of the remaining reported cases," Samsung told Bloomberg following the halt of Note 7 production. According to Bloomberg, the flaw found in the replacement units may be different from the flaw originally found in the exploding units. Examination of incidents suggests that the batteries in the replacement units, made by Chinese company Amperex Technology Ltd., had issues.
As "the coming weeks" draws near, we will know more about the exact reason why the Note 7 was laden with life-threatening issues. The disclosure is a much-needed anthem from the company to extinguish or mitigate the hysteria. For now, it would be premature to predict the total failure of the company since it does have many branches to keep it afloat, though surely, a blow of this gravity has dented its spine. It's hard to imagine where it will go next.
