How the Note 7 recall came to be..

[Kelly Kearns]

Very interesting story here.

"Young engineers' appeal led to Samsung's bold smartphone recall

But the unprecedented recall was not something that was initially in consideration, a company official said on condition of anonymity.

....

According to company officials and other industry sources, it was Thursday that serious postings from the company workers in charge of smartphones began to circulate on the firm's e-bulletin board where employees are allowed to post their views anonymously. It was right after this that news reports speculated that Samsung would likely issue a full global recall of its devices.

"Please exchange them with new ones after fully recalling all the devices sold. I will forego my share of the performance-based incentives, so please do so. I feel ashamed," an engineer of the company's mobile business division wrote on the bulletin board."

Full story here:

Yonhap News Agency

 

[toenail_flicker]

Impressive. Goes beyond even what I've known about Samsung for decades. I knew they were excellent in that way. This otoh is stunning to me.

 

[TylerLV76]

I give them credit for speaking up and even more credit to the company listening to them.

 

[Kelly Kearns]

Pretty impressive they were willing to give up their bonus when the Note 7 was set to make record sales.

 

[D13H4RD2L1V3]

I remember that months ago, I read that Samsung was changing their corporate structure and workplace environment to be closer to that of a startup, where employees get more involvement in the decision-making process.

This seems to be what's going on.

I'm impressed that employees were willing to give up their bonuses in order to do what they feel is the right thing to do. Considering the fact that Samsung used to have a tight hierarchy where the execs usually call the shots, this is very un-Samsung in the traditional sense.

 

[TomOfTx]

Nothing against you Kelly. The bottom line is Samsung took action out of fear what governments around the world would do to them if they delayed taking any action and this issue with the phone batteries led to more serious problems in which loss of life occurred. Back in 2009, Toyota dragged their feet on a problem with the accelerator pedal and floor mats on the Prius before the government issued a recall. Toyota paid out billions of dollars as a result. As a news article pointed out, Samsung would not want a similar situation to happen. Good for them. I just wish they had properly documented the lot numbers of defective batteries to better determine which phones are at risk of a fire instead of recalling every phone.

 

[Kelly Kearns]

Well that isn't what this story is saying at all. Samsung wasn't thinking about taking action at the time.

Also worrying about being sued and worrying about customers also, isn't mutually exclusive.

 

[TomOfTx]

I believe Samsung does have their customers safety in mind. I also feel knowing government agencies take a ready-fire-aim approach, is more a reason to recall every device they do not know for sure is free of defect. Sort of hedging their bets. In the long run it will help Samsung more than hurt them. It does not change my view of them and the products they sell. If it looks like something of use to me, I buy it. Samsung and Apple get almost all my business for mobile phones/computers. Occasionally I will try a OnePlus or similar new device, feel it is lacking, then return to Samsung or Apple.

 

[Kelly Kearns]

Every company should do a Voluntary recall. When governments get involved, it only slows things down. Granted sometimes they have to get involved, but Samsung didn't wait.

The South Korean government is involved, they have a department Samsung has been reporting to and is overseeing, since before the recall was announced.

 

[ThrottleJohnny]

I believe Samsung does have their customers safety in mind. I also feel knowing government agencies take a ready-fire-aim approach, is more a reason to recall every device they do not know for sure is free of defect. Sort of hedging their bets. In the long run it will help Samsung more than hurt them. It does not change my view of them and the products they sell. If it looks like something of use to me, I buy it. Samsung and Apple get almost all my business for mobile phones/computers. Occasionally I will try a OnePlus or similar new device, feel it is lacking, then return to Samsung or Apple.

Agreed. I'm heading for the Apple train right now. But I'm sure I'll be seduced by Samsung again down the road.

 

[team420]

Nothing against you Kelly. The bottom line is Samsung took action out of fear what governments around the world would do to them if they delayed taking any action and this issue with the phone batteries led to more serious problems in which loss of life occurred. Back in 2009, Toyota dragged their feet on a problem with the accelerator pedal and floor mats on the Prius before the government issued a recall. Toyota paid out billions of dollars as a result. As a news article pointed out, Samsung would not want a similar situation to happen. Good for them. I just wish they had properly documented the lot numbers of defective batteries to better determine which phones are at risk of a fire instead of recalling every phone.

Maybe they didnt keep track cuz they already knew of a "possible" problem, and decided to roll the dice...

It's not like there's no precedent for that....


There isn't much that would surprise me at this point, but I'd say they already knew, and had plan b ready to roll...

 

[D13H4RD2L1V3]

Agreed. I'm heading for the Apple train right now. But I'm sure I'll be seduced by Samsung again down the road.

There might be an iPhone in the house for me.

My sister is upgrading from her 5s.

Maybe she'll get the 7 instead (iPhone, not Galaxy S/Note)? Interested to see how it stacks up with my Note.

 

[TomOfTx]

I hope the Note 7 does resurface free of defect. Great phone with an awesome display! Putting it side by side to a iPhone 6S Plus and it made the display look even more amazing!

 

[TomOfTx]

There isn't much that would surprise me at this point, but I'd say they already knew, and had plan b ready to roll...

I hope that were to never be true as it would have a real impact on their mobile phone business. If I were betting money on that scenario, I would bet they did not know. For the money they charge for their phones, they really do not need to cut corners.

 

[Kelly Kearns]

Samsung is a huge company and no way they risk that reputation on hurting or killing people with known dangerous devices.

Also, sorry, that just doesn't fly with an Asian company in their home country.

The Mobile business of Samsung is a drop in the bucket. Not to mention the contracts that Samsung has with Department of Defense and numerous other agencies, their construction business, their weapon making business, appliances and that is just a fraction.

No way Samsung risks any of that with the US by sending out phones they knew could hurt or kill Americans, much less their own people. That falls no where in the realm of smart business and Samsung is smart at business.

 

[team420]

I hope that were to never be true as it would have a real impact on their mobile phone business. If I were betting money on that scenario, I would bet they did not know. For the money they charge for their phones, they really do not need to cut corners.

Don't take this the wrong way, but that is a very naive statement....

That's exactly how big corporations opperate... it's 50% tech, and smarts, 50% gamble. Maybe the %'s aren't accurate, but theres a lot of gamble involved.

Aside from all that....

Replacement devices within a week (for some) of recall.... seems like plan b was already plannned

 

[team420]

Keep this in mind...

Knowing that devices COULD or WOULD kill people, or destroy property, is a WHOLE lot different than knowing that they COULD, but might (probably) wouldnt....

 

[TomOfTx]

team420, I do not disagree with anything you said. A food manufacturer selling contaminated products is far riskier than a phone having a lithium battery fire, so I can understand your theory.

 

[Kelly Kearns]

Don't take this the wrong way, but that is a very naive statement....

That's exactly how big corporations opperate... it's 50% tech, and smarts, 50% gamble. Maybe the %'s aren't accurate, but theres a lot of gamble involved.

Aside from all that....

Replacement devices within a week (for some) of recall.... seems like plan b was already plannned

You don't seem to realize how quickly devices are manufactured. You can order your personalized device and have it in your hands 72 hours later.

All they needed were new batteries. Foxconn makes 500K iPhones a day.

All the parts have been made a very long time.

Corporations weigh risks and a great risk of injury lawsuits, nah.. The corporate attorneys would put a stop to that. It isn't a good risk at all, especially on sue happy USA and juries that like to "stick it to the man".

 

[team420]

No... I understand... i think anyway...

I don't mean the corp as a whole made the decison... I don't think any corp, ever makes too many decisions as a whole...

But... I'm willing to bet, there was a high (ish) level employee that knew, or had an inkling, that this was coming(or at least might), but stood to make huge bonus if it didn't, and rolled the dice...

The lawyers usually know half (if not less) of the actual situation, and have to bulls**t the reat...