Samsung faces credibility problem after phone fires

The consumer product safety commission says it is currently working with Samsung on a remedy


(CNN) – Samsung may have put out the fire but the company is still cleaning up the mess. The world’s largest smartphone maker has slashed billions off its estimated profits after halting production of its galaxy note seven.

The company is still trying to figure out why its phones are catching fire like you see here as consumers wonder if the manufacturer can be trusted.

Stephen Colbert, The Late Show host said, “I have a message for anyone watching the show on your Galaxy Note 7. Run for your lives!”

You can’t help but laugh at Stephen Colbert on the late show unless of course you work for Samsung. The South Korean tech giant’s woes have become welcome fodder for late night comedy shows in the US.

Social media users are having some fun of their own. Mocking the fact galaxy note 7s can be prone to overheating or bursting into flames. Praising the fact it’s waterproof but for all the wrong reasons. Samsung writing off its galaxy note 7 line completely has done little to silence the jokers.

Lee Byung-Tae, Professor, KAIST, “We live in such a world of super connectivity so that you have to embrace it, there’s no other option, you have to communicate with your customers proactively.”

Samsung is now in crisis mode how to rebuild the brand, how to convince customers a potentially dangerous phone replaced by another potentially dangerous phone does not mean they cannot be trusted.

Bob O’Donnell, Analyst, TECHnalysis, “The bottom line is: it makes questions about the brand because all of a sudden we’re not sure we can trust Samsung anymore because they couldn’t solve this problem.”

Most agree that until Samsung figures out exactly what is wrong with the phone and makes moves to ensure it can never happen again it will be hard to regain trust.

Samsung has built credibility from scratch before in 1995, chairman Lee Kun Hee ordered mass burning of products he deemed low quality and defective. Ramming home the message of quality first. A similar message may be needed now although perhaps without the fires.

There is a second shadow hanging over Samsung products, US regulators last month warned owners of certain top-loading washing machines of “safety issues” following reports some have exploded. The consumer product safety commission says it is currently working with Samsung on a remedy.

Paula Hancocks, CNN International Corespondent said, “Samsung Electronics may have already cut its forecast for third quarter operating profits by a third… its first official indication of how this crisis will affect them. But the question Samsung can’t yet answer is how costly this mistake will be to its credibility. Paula Hancocks, CNN, Seoul.”

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