Photograph: Edgar Su/Reuters
What Happened?
Brand Samsung has taken a hit this week when they announced a global recall of their latest smartphone, the Galaxy Note 7. The recall has lead to a complete halt in production of the phone due to months of controversy regarding overheating batteries going on fire and melting phones. We looked at the impact the meltdown had on brand image and customer response.
Samsung issued a statement, “Taking our customer’s safety as our highest priority, we have decided to halt sales and production of the Galaxy Note 7.” Elliot Kaye, Chairman of the US Consumer Product Safety Commission claims, “It is the right move for Samsung to suspend the sale and exchange of all Galaxy Note 7s.”
Current Galaxy Note 7 users are advised to turn off their phone immediately and return to their nearest store. The urgency of the recall came after it emerged that 5 phones had caught fire in the last week. Phone stores have issued a statement that users can replace their phone for another handset from Samsung or other phone manufacturers.
The Galaxy Note 7 was released this summer to highly positive reviews, but within a month of release, reports of the phone’s battery catching fire emerged. In September, Samsung issued their first recall of the faulty phones and sent out replacement phones to those affected. However, the replacement phones also proved to be a fire risk. This ultimately lead to Samsung’s difficult decision to stop production of the phone altogether.
Reaction / Adorescore
Following the recall, Samsung’s Adorescore is a negative -31, with the high intensity emotions being grief, loathing and rage. Mentions of iPhone are driving the most rage within the content, as many are considering making the move from Samsung to iPhone.
Apple are predicted to benefit from the downfall of the Galaxy note. Their Adorescore has risen to a positive 69, with the emerging high intensity emotions being admiration, ecstasy and vigilance. This is a significant increase from our previous analysis, which showed Apple’s Adorescore of 16, during their tax scandal just last month. In fact, the majority of common smartphones higher Adorescores than Samsung.
Samsung’s shares declined 8 percent in one day, which is the biggest single-day decline in over 10 years. Analysts have estimated the recall could cost the company up to $17 billion. The Korean company is definitely not completely out of the mobile business despite the debacle but recovery will be slow.
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The analysis shows the level of impact one negative story can have on brand image and customer perception. The Adorescore can help quantify how the world feels about your brand. To find out more or to test out the product, click here.
