Samsung, the Galaxy Note 7, and trust

New York Times:

When several Samsung Galaxy Note 7 smartphones spontaneously exploded in August, the South Korean company went into overdrive. It urged hundreds of employees to quickly diagnose the problem.

None were able to get a phone to explode.

Next step?

Samsung, which announced a recall of the Note 7 devices in September, decided to continue shipping new Galaxy Note 7s containing batteries from a different supplier.

As we now know, that approach did not work.

Reports soon surfaced that some of the replacement devices were blowing up too. Company engineers went back to the drawing board, according to a person briefed on the test process who spoke on the condition of anonymity because the internal workings were confidential. As of this week, Samsung’s testers were still unable to reproduce the explosions.

This is a serious blow to Samsung. Trust is everything to a brand.

An editorial in South Korea’s largest newspaper, the Chosun Ilbo, said: “You cannot really calculate the loss of consumer trust in money.”

Just so.