Samsung Electronics Co Ltd Chief Executive Kwon Oh-hyun on Tuesday said the South Korean tech giant must improve, as it reels from the costly withdrawal of its Galaxy Note 7 smartphone. Without referring directly to the failure of the fire-prone Note 7s, Kwon said in a statement Samsung employees should look back and ask whether they had been complacent in their work.
“We have a long history of overcoming crises,” Kwon said. “Let us use this crisis as a chance to make another leap by re-examining and thoroughly improving how we work, how we think about innovation and our perspective of our customers.”
The global smartphone leader and Apple Inc rival last week said it aimed to recover quickly from the withdrawal of the fire-prone Note 7 in October.
The debacle raised concerns about Samsung’s quality control systems and dragged its third-quarter mobile earnings to their lowest level in nearly eight years, but so far no one at the firm has been publicly held responsible. Samsung is expanding its probe into the Note 7 fires beyond batteries, as it tries to get to the bottom of one of the worst product failures in tech history.
According to a recent IDC survey, close to half of Galaxy Note 7 owners in the US have moved on to the Apple iPhone instead of opting for the Galaxy S7, S7 Edge after the Note 7 phones recall. A survey held by Samsung in South Korea found that a majority of consumers have become apprehensive of the Samsung brand, and that the company has to work on winning consumer trust back.
Samsung is working on the cause of the Note 7 fires and has been reassuring its investors that it will find the cause of the worst product failure in the company’s history. Even while the Note 7 disaster has cost the company billions in profits, the Samsung brand has not likely taken a huge hit.
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