The introduction of Samsung’s second Flagship device, the Galaxy Note 7, was supposed to be like all others before it: smooth, flawless and with lots of money going into Samsung’s huge bank balance.
Instead, there has been a double recall as a result of the fires from exploding batteries; leading to huge embarrassment for the company. And to cap it all, Samsung has decided to give $100 discount to all Galaxy Note 7 owners who chose to exchange the Note 7 with a different Samsung device.
In a nutshell, the Note 7 would cost Samsung billions of dollars instead of making it for them. The cost of the double recall has being estimated to cost several billion of dollars. Not to talk of the plummeting value of the company’s shares in the stock market and the fact they had to sell off shares to fund the first recall.
According to reports, the immediate and long term losses directly linked to the disappearance of the Note 7 from shelves would be about $17 billion. That is the kind of money that would break any company. But Samsung is not just any company though.
Samsung would still make a profit from its mobile division. But not as much as it would have hoped though.
So how about the idea of Note 7 owners exchanging the device for another Samsung product at a $100 discount? Would users jump on the train and do the swap?
The problem with this offer is that the Note 7 has some unique features that no other Samsung device offers. Many fans of the Note 7 would tell you they buy the device for the stylus pen and the the huge screen. Therefore taking up the offer would be like exchanging the Note 7 for an inferior model.
But for people who just bought the device because they needed the latest model Samsung phone, switching to the S7 and S7 Edge might be a good compromise. These phones are not bad at all. And since they were launched earlier this year, there has being no bad press linked to them.
So this offer might work out for Samsung in boosting the sales figures of S7 and S7 Edge. In a way, it would be a win-win situation for buyers and sellers.
However, like I said earlier, hard-core Samsung Galaxy Note 7 would simply not see this as a good deal for them. A different approach should be designed for them I think. For instance, why not encourage affected Note 7 users to buy the Note 5 ( there is no Note 6 in the series) at a discount. After all, the Note 5 is just a year old and is also a pretty good device which can be easily upgraded to the latest Android operating system.
To sweeten the deal even further, users who pick up this option should be promised a significant discount when the Note 8 comes out, hopefully next year.
In one breath, Samsung would have boosted the sales of the Note 5 while at the same time assuring users of been given preferential treatment when Note 8 is launched.
As for the Galaxy Note 8, though rumours have started flying around about the phone, caution should be the watch word as far as the device is concerned. Thing is, in phone models like the Note series, new models are always based on the immediate predecessor with just slight changes in a few places.
Since it has already being established that the problem with the Note 7 was more than just defective batteries, the idea of basing the Note 8 on the Note 7 would be a scary thought for everybody.
Basically, it would take a lot of work on the part of Samsung’s technician to really analyze what went wrong with the Note 7 before they can start to think of redefining aspects of the the phone to make the new Note 8.
So I won’t be surprised if the Note 8 is based largely on the Note 5 with just some design changes and of course, the latest operating system.
For now though, Samsung would be waiting anxiously to see how many Note 7 users take up the offer to buy another Samsung device at a $100 discount.
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