Samsung may face a "trust crisis" in China due to exploding Galaxy Note7 units
Samsung's Note7 battery crisis may worsen after several users in China posted pictures of burnt Galaxy Note7s online.
Despite assurance from Samsung that the Galaxy Note7s sold in China are safe to use, several reports of the devices exploding might lead to the loss of confidence in the brand.
According to Forbes, some users in China posted photos of burnt Galaxy Note7s online on Sunday and Monday and claimed that the phones caught on fire. This prompted other users visiting Samsung retail stores to ask for a refund.
Samsung reportedly issued a statement clarifying that these incidents were caused by external heat. Last week, the Korean company said that the batteries of the Galaxy Note7 sold in China are not defective. Instead of carrying out a full recall in China, Samsung only planned to recall 1,858 Note7s sold as testing devices from 20th July to 5th August. This could be a big mistake.
Forbes - The issue is edging Samsung towards a "trust crisis" in China, says Canalys research director Nicole Peng. It would be better if the company starts a full recall in the country, instead of offering repeated, but unclear explanations on the different battery suppliers, she says.
People have doubts about the Samsung brand, she says. "Keep emphasizing on the battery supplier doesn't help".
Due to the lack of clarity over these reported issues, consumers may opt for Apple and Huawei. According to a survey conducted by iiMedia Research, 37% of current Samsung users in China stated that they will choose the iPhone as their next smartphones while 26% will choose Huawei.
Peng also shared that it could take up to two flagship product updates for consumers to regain their confidence in the Samsung brand. As a result, demand for Samsung smartphones may drop for the next 6 to 12 months.
Source: Forbes
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