Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Eskom targets 32GW green energy shift by 2040

      16 July 2025

      MTN Group appoints new chief enterprise officer

      16 July 2025

      Kruger Park’s white rhinos get a hi-tech lifeline

      16 July 2025

      South Africa loosens media ownership rules – but keeps one hand on the remote

      16 July 2025

      The real cost of a cashless economy

      16 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Note7 debacle a temporary setback for Samsung

    Note7 debacle a temporary setback for Samsung

    By Duncan McLeod18 September 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    galaxy-note7-640

    Twenty-two billion dollars. That’s the value that was wiped off the market capitalisation of Samsung Electronics in two days last week as investors took stock of implications of a global recall of its latest flagship smartphone, the Galaxy Note7.

    But the reputational damage is likely be short-lived, analysts believe, provided the company manages the crisis precipitated by reports of exploding Note7 batteries properly – and all indications are that it has fully appreciated the gravity of the situation.

    The crisis comes at an unfortunate time for Samsung. Not only had the Note7 been receiving highly positive reviews by the technology press — with some calling it the best device the Korean manufacturer has made — but the large-screen phone has been stealing some of the limelight from arch-rival Apple in the weeks leading up to the launch in California this week of the iPhone 7 and 7 Plus.

    Brian Neilson, research director at Johannesburg-based BMI-TechKnowledge, said there’s no doubt that the battery crisis will inflict short-term reputational damage on Samsung.

    Its decision to recall millions of Note7 units “is obviously the right thing to do”, Neilson said. “But they have gone beyond this – at least in their home market of Korea – by softening the blow by giving consumers a temporary replacement smartphone on loan. If they could do this in all 10 countries in which the 2,5m ‘phablets’ were recalled, that would be a huge demonstration of goodwill, mirroring the high levels of service Samsung users in South Africa have grown used to when having a broken screen replaced for free, and even while you wait, at their carry-in repair centre in Johannesburg, for example.”

    He said Samsung must be relieved that it was the Note7 and not its smaller handsets, which sell in much higher volumes, that had to be recalled. “Two-and-a-half million is a large recall, but nothing like the almost 300m units it ships annually.”

    The debacle surrounding the Note7, which hadn’t yet gone on sale in South Africa, may prompt some consumers to consider large-screen devices from Chinese rivals and from Apple. “But those in the market for a smaller Samsung phone are still likely to keep the brand near the top of their list,” said Neilson.

    • This article was first published in the Sunday Times


    BMI-T BMI-TechKnowledge Brian Neilson Samsung
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSony Xperia XA review: mixed bag
    Next Article Policy bungling keeps data costs high

    Related Posts

    TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

    16 July 2025

    Samsung’s bet on folding phones faces major test

    10 July 2025

    Samsung unfolds the future with thinnest, lightest Galaxy Z Fold yet

    9 July 2025
    Company News

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025

    Banking on LEO: Q-KON transforms financial services connectivity

    14 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.