Samsung (SSNLF) has certainly been beset by more than its fair share of woes, and they aren’t over quite yet.
The Korean electronics giant has taken a big hit due to their fiery phones, but they have been universally praised for the way they handled the disaster. First they speedily identified the problem, then they recalled the affected units. When it turned out that the model simply couldn’t be saved, the company bit the bullet and accepted returns of every single one.
Samsung actually came off as sympathetic in the whole debacle. Mainly because the Galaxy Note 7 had garnered such enthusiastic praise from early reviewers and was seen as the device that would actually turn out to be an iPhone killer.
But public opinion is getting ready to make a complete turnaround.
So far, the grumblings are low, they haven’t gained too much momentum yet. But they are starting to attract notice. The problem? Samsung isn’t compensating Galaxy Note 7 owners for all of the damage directly related to their phones.
For instance, personal property such as furniture and carpets have been damaged due to either the actual fire or the fire retardant used to put the fire out, when owners had a Galaxy Note 7 burst into flames. Some owners actually had to move out of their homes.
Even after withstanding huge losses due to the incident, there is no question that Samsung could afford to make reparations, these are claims that fall far short of multi-million liability suits. But, instead, Samsung is choosing to stay within its technical right to handle these claims like a cheesy insurance company and pay only depreciable value for goods and no compensation for lodging or meals.
Analysts may applaud this as financially sound at the moment. But if the public starts making its opinion known by leaving Samsung’s products in droves, that may turn out to be a shortsighted decision.