Despite having shut down production of the “Galaxy Note 7,” Samsung Electronics Co Ltd (KRX:005930) will not rush to release its replacement. Rumors about the anticipated launch of the “Galaxy S8” had spread as some analysts were betting on an imminent announcement. (Source: “Samsung Electronics Turns Down a Rumor of Possible Early Release of Galaxy S8,” ETnews, July 25, 2016.)
According to the Korean site, development of the Galaxy S8 is still partly in progress to avoid reliability problems from happening to this unit as well. Given these statements, there is every reason to believe that the next flagship “Galaxy S” fleet will be presented at the Mobile World Congress 2017 in late February in Barcelona. (Source: “Samsung Galaxy S8: Release date, price, specs and other rumours about the next generation smartphone,” Mirror, October 10, 2016.)
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The Galaxy Note 7 was withdrawn from sale. Airlines banned it because of the risk of explosion. Yet some are keeping it despite the risks, preferring to focus on its new features to the detriment of their security. While, the S8 is ready to hit store shelves, Samsung has decided to release an update in Europe to limit the Galaxy Note 7’s battery to 60%. (Source: “European Samsung Galaxy Note 7 gets update limiting battery to 60%,” Android and Me, October 25, 2016.)
The update might not do much to fix Samsung’s reputation for now, but it should reduce the risk of explosion. The update will become available on October 31. Apparently, there are still a million people using a Galaxy Note 7, despite Samsung’s efforts to pull it off the market. In South Korea, meanwhile, Samsung Group stock continued to drop, losing almost two percent on Wednesday.
Samsung came under pressure from a top South Korean legal firm. Harvest Law launched a class action suit against Samsung to demand compensation for the Galaxy Note 7 debacle. The class action represents 527 buyers and demands about $440.00 in damages (₩500,000) per person, to compensate them for the time wasted as part of the device’s recall. The time-wasting occurred as Note 7 customers were forced to go to stores to rent or buy other phones after airlines banned the Galaxy Note 7 on international flights.
Indeed, such is Samsung’s vulnerability that an investment consulting firm has urged shareholders to reject the appointment of Samsung’s Jay Y. Lee, vice president of Samsung Electronics and heir to the family empire, to the board of directors. This has clearly dealt another blow to Samsung’s prestige. (Source: “Samsung’s prestige takes another hit over lawsuit,” Phys.org, October 25, 2016.)
