Samsung today is in a very tight spot. I’m not talking about now, but over the past few weeks ago. As for what’s happening right now, the buzz around the web points to five of its replaced Galaxy Note 7 phablets catching fire, which is an even bigger problem. But it doesn’t end there. Samsung has something off epic proportions headed its way. No, it’s not about how it discards those faulty smartphones, but the hurricane of lawsuits and problems related to customer service, ones that Samsung has yet to address formally. Right now it simply appears the company’s communications team has taken a step back.
“The real impact of Samsung’s Note 7 mess up will be visible in the next 3-4 quarters. This will not die in just the next quarter. The brand has been impacted in a very huge way. Samsung should only expect a modest outcome from their upcoming smartphone announcements. Samsung has already lost 16 billion dollars in this mess and you could probably add an equal amount in terms of sales.” said Sanchit Vir Gogia, Chief Analyst and CEO of Greyhound Research.
“The consumer mindset is very shortlived. They are a very strong company that has delivered some great results and great products in the past as well. We will see financial impact in the short run, but with its solid credibility, Samsung could work its way out.” he said.
The launch of the Google Pixel is not great news for Samsung either. “With a Daydream ready smartphone and a VR ecosystem to go, the Pixel will have a negative impact on Samsung’s sales with consumers looking at the Google Pixel XL instead as they have instant software updates to go with it as well.” said Sanchit Gogia.
“Samsung has done very poorly on the communication part of this issue. It should have communicated very proactively, and explained and apologised for the same. The company could have even launched a campaign to tell the world what was happening and how were they handling the situation.”
“Nestle in India went through similar issue with Maggi and Cadbury, but they pulled it off beautifully by being open about the issue. Even a campaign giving an indepth look at how the smartphones were made would have helped with customer satifaction about the brand.” he said, when comparing these instances on how other brands have handled the same.
Source: First Post