Samsung was in the limelight this year for launching the much-awaited smartphone, Galaxy Note 7 that burst into flames for quite a few customers around the world. Not only did the company face a lot of heat, the phone got discontinued after back-and-forths on replacements and relaunches.
The whole debacle cost Samsung not just $17 billion, but a lifetime worth of trust and praise. Adding to this, Samsung Electronics has decided to recall 2.8 million washing machines, top-loading, due to a risk associated with them.
At the moment, this recall has begun in the US where washing machines manufactured from March 2011 onwards have been identified to be risky. US Consumer Product Safety Commission (CPSC) has claimed that the top part of the machines can detach itself from the lower body, posing a danger to the user.
Samsung said in a statement, “The voluntary action was driven by reports highlighting the risk that the drums in these washers may lose balance, triggering excessive vibrations, resulting in the top separating from the washer. This can occur when a high-speed spin cycle is used for bedding, water-resistant or bulky items and presents an injury risk to consumers.”
Is this similar to the Note 7 fiasco?
When the Galaxy Note 7 smartphones started bursting around the globe for no reason, customers started expressing their disgust and anger on social media. The same has been seen for the washing machines that have dislodged their top during operation.
Some users have reported excessive shaking of the washing machines, while some have been injured by the machine top detaching from its body. A total of 733 such cases have been reported, in which a few have broken a jaw, injured shoulders and bruised other body parts.
733 is a huge number, definitely a lot bigger than exploding smartphones and has become a huge debate in the US. The recent Galaxy Note 7 disaster has highlighted this issue and brought Samsung into the headlines again.
How does Samsung plan to mitigate the problem?
If Samsung doesn’t anything to reduce the damage now, then it will face a number of lawsuits. To mitigate this, the company is offering a free repair of the washing machine and a discount in case of a new washing machine purchase.
Moreover, anyone who has purchased a fresh machine in the last 30 days can get full refund on the product. This issue does not plague the front-loading machines so these customers needn’t worry.
Ethically, the company is taking the best measures to reduce the losses and provide the best service to its customers. But a defect again in another product is almost like a nail in the coffin. Customers will not think twice before purchasing a Samsung product, even more in countries like the United States where there are local brands that compete with the Korean company.
It seems like the financials for this year will take a dip and the company will face severe impact of all this, despite its logical solution to the problems. The competitors will also now take advantage of this fact and take a lead position very soon.
Source: WSJ
