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Samsung moves on from Note 7 crisis after throwing SDI under the bus

By Jos
Nov 24, 2016
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  1. Samsung’s Galaxy Note 7 fiasco prompted the company to announce an unprecedented recall of about a million handsets that wiped a few billions from its market value. While the full extent of the damage done to the brand’s reputation remains to be seen, Samsung SDI, its affiliate battery division that largely took the blame for the incident is reportedly struggling to keep its roster of clients intact.

    According to Reuters, Samsung SDI is quietly reassuring anxious clients including Apple that its batteries are safe. The company — a joint venture between Samsung and Japan's NEC — has lost around a fifth of its market value since the problem first emerged, and its third quarter operating loss was more than double that of a year earlier, suggesting some customers may be fleeing already.

    SDI has said the battery problem was limited to the Note 7 and that reliability checks on products with major customers resulted in no problems. The company holds a 25% market share in small device batteries. Its close ties to Samsung Electronics have helped it build scale and reputation, but its efforts to expand to the automotive industry and other sectors might be slowed down by the Note 7 fiasco.

    Samsung was quick to blame the battery for causing some Note 7 devices to catch fire, but it has since widened its investigation after replacement phones using batteries from China's Amperex Technology also caught fire. Now that the dust has settled somewhat, surveys indicate the Samsung brand has weathered the storm. Consumers still view the name and its products favorably. That’s not the case for SDI, however.

    It would be interesting to see a more conclusive report on the reason behind Galaxy Note 7 devices catching fire and how much of the blame actually lies on Samsung’s design.

    Permalink to story.

     
  2. Squid Surprise

    Squid Surprise TS Guru Posts: 861   +272

    Since the phones still caught fire with batteries NOT from SDI, I think it's pretty obvious that SDI are not to blame for this - or at least, they aren't solely to blame.
     
    ATLVM, avoidz, Humza and 3 others like this.
  3. Raoul Duke

    Raoul Duke TS Guru Posts: 930   +354

    Interesting to find out after all the Samsung vs. Apple hoopla to find out that SDI also provides batteries to Apple.
    The plot thickens...
     
    ATLVM likes this.
  4. alabama man

    alabama man TS Maniac Posts: 215   +126

    Hope SDI sues Samsung for the damage they've done. It's clearly Samsung's fault with their poorly tested product and them blaming smaller company for their own lack of quality shows they have no morals. Samsung needs to inform all SDI's clients and possible future clients that the blame was fully on them and give some monetary compensation as well if they hope to correct the situation but I guess they won't, teaches you to work with samsung.
     
  5. Squid Surprise

    Squid Surprise TS Guru Posts: 861   +272

    lol.... You DO know that the "S" in SDI stands for Samsung, right?

    It might be a different division, but it's still owned by Samsung - I highly doubt they'll be suing themselves....
     
    Darth Shiv likes this.
  6. Bigtruckseries

    Bigtruckseries TS Maniac Posts: 402   +215

    The best part is all the new customers Apple has for iPhone 7 Plus.
     
  7. VitalyT

    VitalyT Russ-Puss Posts: 3,149   +1,424

    It's always been like this, even when no-one is guilty, someone always hangs for it, because the rest needs an entertainment.
     
  8. Mad383Max

    Mad383Max TS Rookie

    Not likely....
     
  9. Bigtruckseries

    Bigtruckseries TS Maniac Posts: 402   +215


    You'll hear eventually how many customers Samsung lost due to the GalaxyNote 7 fiasco.

    Some of them bought those "other" substandard Android phones I can't be bothered to name. Many of them got the iPhone.

    Lucky them.
     
  10. Phr3d

    Phr3d TS Booster Posts: 237   +42

    "The company — a joint venture between Samsung and Japan's NEC — has lost around a fifth of its market value since the problem first emerged, and its third quarter operating loss was more than double that of a year earlier, suggesting some customers may be fleeing already."
    for those that can't be bothered to read all those paragraphs, lol..

    yep, dis be oogly..
     
  11. ATLVM

    ATLVM TS Member Posts: 64   +7

    Hey no one accused people of doing research.... people just react with emotion rather than facts.
     
    Squid Surprise likes this.
  12. ATLVM

    ATLVM TS Member Posts: 64   +7

    Uh except someone *IS* guilty.. they may not be fully clear on who they are, but there is CLEARLY guilt here, someone didn't engineer or TEST the product, this is hardly blameless!
     
  13. ATLVM

    ATLVM TS Member Posts: 64   +7

    I love how some dimwitted people hold stubbornly to their loyalty to a company that is CLEARLY inferior, it was just a matter of time, Samsung cannot KEEP up with Apple.. this pretty much proves it, they rush everything in hopes that Apple won't further eat their lunch.

    Samsung *IS* the other sub-standard Android phone..
     
    Bigtruckseries likes this.
  14. Bigtruckseries

    Bigtruckseries TS Maniac Posts: 402   +215


    Thank you.

    It's the "rushing" of their products which hurts them most. When you rush, "quality control" goes out of the window.

    They rushed the 6 - everyone hated it because they copied iPhone and now you couldn't use your memory car or removable battery.

    They returned the removable memory card, but not the user replaceable battery in the 7.

    I love Apple's NAND flash. I use iMovie a lot and rely on it for my Youtube income. It's easily the best "package" on the market.

    I don't need 30 Megapixels.

    I just need a reliable HD camcorder able to shoot 1080p 60FPS or better.

    Samsung makes it a numbers game.

    Apple has 4K?

    Oh Yeah??? Well we'll have 8K.

    Apple has 256GB?

    Oh Yeah??? Well We'll have 259...

    It's ridiculous.

    But their real problem isn't the specs.

    Their real problem (each and every one of the Android manufacturers) is that no matter what they put in their phones, they can't run iOS - and they'll only be - at their best - "another android phone".

    How many "iPhone killers" have been offered since the Evo?

    You can't "kill the iPhone" because it has no real competition thanks to a proprietary and exclusive OS.
     

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