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Samsung's smartphone recall is big, but far from worst in history - Insurance Coverage

Insurance Coverage

Posted on: Oct 13, 2016

According to the Insurance Journal, Samsung Electronics Co.’s recall of its fire-prone Galaxy Note 7 smartphone will be one of the biggest recalls ever in the technology industry. The South Korean conglomerate pulled the plug on the entire product line and slashed its third-quarter profit forecast by $2.3 billion.

On a 10-point scale measuring financial and reputational damage to a company, Samsung’s recall ranks between 4 and 7, said Srinivas Reddy, director of the Center for Marketing Excellence at Singapore Management University who has researched product and brand failures. That’s because the exploding phones — while still “a calamity” for the company — haven’t killed anyone, Reddy said.

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