Samsung's Battery Crisis Began With Rumors of a 'Dull' iPhone

[MacRumors]

Samsung pushed suppliers to meet tighter deadlines for an earlier launch of the ill-fated Galaxy Note 7 after hearing that the iPhone 7 would have no major design changes, according to a new report published today.

The Bloomberg report cites multiple sources indicating that executives at Samsung saw rumors of Apple's apparent lack of innovation this year as an opportunity, and quickly approved a slew of new features for the Note 7 after getting hold of an early version of the device.

According to one person familiar with the matter, the select group of top managers "gushed over the upgrades and praised each other's work", and approved a launch date 10 days earlier than last year. Samsung's unveiling was August 3 this year, compared with August 13 in 2015.

As the launch date approached, employees at Samsung and suppliers stretched their work hours and made do with less sleep. Though it's not unusual to have a scramble, suppliers were under more pressure than usual this time around and were pushed harder than by other customers, according to a person with direct knowledge of the matter. One supplier said it was particularly challenging to work with Samsung employees this time, as they repeatedly changed their minds about specs and work flow. Some Samsung workers began sleeping in the office to avoid time lost in commuting, the supplier said. Samsung declined to comment on whether deadlines were moved, reiterating that products are only introduced after proper testing.

When the phones got into customers' hands, reports of exploding handsets began. According to Bloomberg, executives at Samsung headquarters were in shock. Internally, there was a debate over whether to do a full-blown recall or to take less dramatic steps, like a battery replacement program. In the end, Samsung mobile chief decided on a full recall.

Samsung has drawn criticism for the steps it took next. Apparently driven by good intentions, the company announced the recall plans publicly before working out how millions of consumers in 10 countries would actually get replacements.

Then it sent mixed signals about what customers should do. First, Samsung told people to shut off their phones and stop using them. A few days later, it offered a software patch to prevent batteries from overheating, signaling consumers could keep using the phones.

But Samsung moved so fast it got ahead of regulators who help organize such programs. In the U.S. for example, companies are supposed to notify the Consumer Product Safety Commission within 24 hours of uncovering problems. Instead, Samsung went public on its own and consumers didn't have clear guidance on how to exchange their phones.

Asked to confirm that launch deadlines for the Note 7 were shifted, Samsung told Bloomberg that release dates are determined by "the proper completion of the development process and the readiness of the product for the market."

Meanwhile sales of Apple's iPhone 7 appear to have exceeded analysts' expectations, particularly demand for the larger 7 Plus, which was all but sold out across the globe on launch day. The company's choice of black handset color options has also piqued interest among consumers, despite concerns about the lack of a headphone jack on the new devices.

You can read more of the Bloomberg story here.

Article Link: Samsung's Battery Crisis Began With Rumors of a 'Dull' iPhone

 

[drumcat]

I guess that rumour "blew up".

Heh... I couldn't help it.

 

[SethBoy]

Samsung has had fridges explode (http://ireport.cnn.com/docs/DOC-44470) and washing machines start fires (http://abc11.com/news/consumers-claim-some-samsung-washing-machines-explode/1056429/) but sure, blame the “dull” iPhone and talk about Samsung’s reputation of high quality products.

Poor journalism.

 

[Dormammu]

Oh my.

 

[Telos101]

Samsung has had fridges explode (http://ireport.cnn.com/docs/DOC-44470) and washing machines start fires (http://abc11.com/news/consumers-claim-some-samsung-washing-machines-explode/1056429/) but sure, blame the “dull” iPhone and talk about Samsung’s reputation of high quality products.

Poor journalism.

Lol, the Bloomberg report cites multiple sources and internal memos.

Go back to bed.

 

[iamthealchemist]

Like Icarus, flew too close to the sun. The hubris mentality of Samsung.

 

[Legend of Ive]

I don't know why anyone in the right night would buy a Samsung phone. The software is ****, if you're going to buy an android, go buy a nexus. You get 2 years software update.

Samsung is beats on steroids, they charge you flagship price the drop you support after a year

 

[FFR]

"The chairman of the U.S. Consumer Product Safety Commission was more explicit when his agency announced an official recall on Thursday. He said the phone’s battery was slightly too big for its compartment and the tight space pinched the battery, causing a short circuit. “Clearly, they missed something,” said Anthea Lai, an analyst with Bloomberg Intelligence. “They were rushing to beat Apple and they made a mistake.”"

So a design flaw.

 

[Northgrove]

What an epic mess up. They seriously wrote a patch so that the phones would draw less power in hopes that the faulty batteries wouldn't explode? I don't even... Is that course of action even OK by the product safety agency? It sounds like mighty thin ice to walk where personal safety is at risk.

Edit: If the problem was caused by short circuiting the battery I guess that patch wouldn't even have helped since that is unrelated to battery load. Sounds like they were just in panic mode.

 

[CEmajr]

Forever the beta company, Samsung continues to act and move on rumors surrounding what Apple "might" be working on. Reminds me of them releasing the rushed and subpar original galaxy gear just to beat the rumor of an Apple iWatch to market. A watch that they later admitted was subpar. They desperately want to be Apple so badly. Ironically enough the iPhone 7 ended up being a hit.

 

[rudychidiac]

This year's smartphones are boring and explosive

 

[jayducharme]

Blindly driven by good intentions

I think "profits" was misspelled as "good intentions".

 

[mejsric]

Smart strategy Tim, just like you did on 64bit.

 

[InsoftUK]

Samsung pushed suppliers to meet tighter deadlines for an earlier launch of the ill-fated Galaxy Note 7 after hearing that the iPhone 7 would have no major design changes, according to a new report published today.

The Bloomberg report cites multiple sources indicating that executives at Samsung saw rumors of Apple's apparent lack of innovation this year as an opportunity, and quickly approved a slew of new features for the Note 7 after getting hold of an early version of the device.

According to one person familiar with the matter, the select group of top managers "gushed over the upgrades and praised each other's work", and approved a launch date 10 days earlier than last year. Samsung's unveiling was August 3 this year, compared with August 13 in 2015.
When the phones got into customers' hands, reports of exploding handsets began. According to Bloomberg, executives at Samsung headquarters were in shock. Internally, there was a debate over whether to do a full-blown recall or to take less dramatic steps, like a battery replacement program. In the end, Samsung mobile chief decided on a full recall.

Samsung has drawn criticism for the steps it took next. Blindly driven by good intentions, the company announced the recall plans publicly before working out how millions of consumers in 10 countries would actually get replacements.
Asked to confirm that launch deadlines for the Note 7 were shifted, Samsung told Bloomberg that release dates are determined by "the proper completion of the development process and the readiness of the product for the market."

Meanwhile sales of Apple's iPhone 7 appear to have exceeded analysts' expectations, particularly demand for the larger 7 Plus, which was all but sold out across the globe on launch day. The company's choice of black handset color options has also piqued interest among consumers, despite concerns about the lack of a headphone jack on the new devices.

You can read more of the Bloomberg story here.

Article Link: Samsung's Battery Crisis Began With Rumors of a 'Dull' iPhone

[doublepost=1474278111][/doublepost]Samsung didn't beat Apple with iPhone 7, they failed big time as the iPhone 6s was twist as powerful as Samsung new phone, biggest fail ever by $amsung

 

[keysofanxiety]

This event is likely to tarnish Samsung's reputation for some time and one of the reasons it'd take something special for me not buy an Apple device. Boring or not, I'd rather something that is reliable and has been appropriately tested before shipping.

If you're tempted to cite touch-gate, iPhone 4 signal, and bending phone issues as being proof that Apple's QA has slipped, that's nowhere near comparable to exploding phones.

 

[scotttnz]

I knew it! It had to be apples fault!

 

[iAbc21]

Forever the beta company, Samsung continues to act and move on rumors surrounding what Apple "might" be working on. Reminds me of them releasing the rushed and subpar original galaxy gear just to beat the rumor of an Apple iWatch to market. A watch that they later admitted was subpar. They desperately want to be Apple so badly. Ironically enough the iPhone 7 ended up being a hit.

Drag em

 

[Savor]

Samsung is right at one thing. It is a DULL iPhone. Splash two black options, copy HTC and Sony features from 3.5 years ago, remove headphone jack, not improve much in display, camera, and performance and call it iPhone 7/7 Plus. Worst upgrade since going from 3G to 3Gs.

It's a dull upgrade. Samsung should have slowed their roll. It's okay though. Apple still loses in several areas to Samsung including manufacturing ANYTHING THEMSELVES and real homegrown technologies. Apple still needs Samsung like they do with TSMC and Foxconn.

I don't think popularity = quality. That's like saying Justin Bieber is a better music artist than Steve Jobs' idol, Bob Dylan, because he sells more records. So iPhone 7 can outsell Note7 50:1.

Apple iPhone 7 / 7 Plus loses again to Samsung's ISOCELL. Samsung packs QHD and still surpasses phones with 1080p and 720p in battery life. Apple loses in overall design too rehashing a design from 2014 to push it for 36 months while Samsung is guilty of it for the last 18 months but can change it up six months from now.

Recall happening BEFORE the iPhone 7 is actually better for Samsung in the long run. They had time to reorganize. Imagine had the recall happened closer to the shopping season? Fireworks to light up New Year's Eve. It was a mistake by Samsung's part. They owed up it and will move on. They are not going to just roll over their belly and die on us. Sony and Toyota are still fine after their recall. Samsung is currently richer than both of them. Move on...

 

[Hanzu Lao]

"The chairman of the U.S. Consumer Product Safety Commission was more explicit when his agency announced an official recall on Thursday. He said the phone’s battery was slightly too big for its compartment and the tight space pinched the battery, causing a short circuit. “Clearly, they missed something,” said Anthea Lai, an analyst with Bloomberg Intelligence. “They were rushing to beat Apple and they made a mistake.”"

So a design flaw.

You mean a real one. For real now. Not like every fart regarding Apple product is a design flaw

 

[fitshaced]

Battery too big for the compartment? Try removing the headphone jack.

 

[Exile714]

Blindly driven by good intentions, the company announced the recall plans publicly before working out how millions of consumers in 10 countries would actually get replacements.

​

​

Well, that's a sentence...

I'm still trying to figure out what "blindly driven by good intentions" means, and the contexts does not help at all. I'm pretty sure "bungled damage control" needs to fit in there somewhere.

 

[5105973]

The Note 7, had it been done properly and not in a flipping rush like it apparently was, could have been a contender. It was an amazing device the two weeks I had it. I hate big phones and shelved my IPhone 6S Plus in favor of my SE but my Note 7 tempted me into wanting to make it my daily driver and not just my pocket computer (that actually lives in my purse).

It did look, feel and run like a premium device. It was head and shoulders above the Galaxy S7 and S7 Edge my husband and I were given as loaners. Speaking of my husband, he has loathed Android for ages, but even he liked and misses his Note 7 and has been tempted to shelve his 6S Plus in favor of the Note 7 as his main phone. I don't think he actually would, but he has been tempted.

All Samsung needed to do was just mind its own business and focus. Instead they have this unhealthy obsession with trying to best Apple at a game Apple owns. It makes Samsung look like it is run by school kids.

In fairness though, Apple looks over its shoulder at Samsung, too, and allegedly ramped up its production of IPhones to take advantage of the exploding Note 7 situation and get a few disgruntled and displaced Samsung customers. But activating some unused capacity to meet an unexpected potential increase in demand is a far cry from rushing into production so fast you fail to notice your battery is too freaking big for the case. Good grief.

And then tripping over your own feet to rectify the situation...

 

[Savor]

Samsung can recover from this? Hell yeah. Is the Note7 the only phone in their portfolio? They sell a ton of other phones. Look at Toyota where they had a far worse fiasco with a recall across multiple product lines.

http://www.forbes.com/sites/annemar...d-from-the-brands-recall-crisis/#424ceae243ae

 

[Jax44]

Sadly, Samsungs greed got to them.

Rushgate.


Lee Byung-chul Is rolling in his grave.

Those bezels...

 

[CFreymarc]

This will be a good lesson in engineering and MBA schools for years to come.