How Does Samsung Plan to Retain Its Customers?

Despite announcing the halt of Galaxy Note 7 production and incurring heavy financial losses, Samsung is seeking to encourage its customers to purchase other Samsung models to prevent further losses and not cede the market to its rival Apple. Reports of 35 incidents of Galaxy Note 7 explosions forced the South Korean company to confirm the battery issue and announce that it would replace sold Note 7 devices. Although Samsung claims not all batteries in this series are defective, it has not specified how many of the approximately 2.5 million Note 7s sold worldwide might catch fire or explode due to the battery issue. Samsung, having stopped production of this model, has offered customers the option to exchange their Note 7 for one of its latest products, namely the Galaxy S7 or S7 Edge, along with a $95 gift. Given the lower prices of the S7 and S7 Edge compared to the Note 7, customers will receive additional compensation when exchanging their devices. Thus, customers exchanging a Note 7 for an S7 Edge will receive between $125 and $155. In cases where customers do not wish to switch to another Samsung model, they can return their Galaxy Note 7 and receive a full refund. In this case, to ensure customer satisfaction, a €24 shopping voucher will also be provided. With this move, Samsung aims to retain its hard-won customers. The Galaxy Note 7 phablet, a combination of phone and tablet, attracted many customers with its unique feature of working underwater even with a stylus. This 5.7-inch model with 64GB internal memory, running Android 6.0.1 and featuring a 12-megapixel camera, was an attractive option for large phone enthusiasts. However, which of Samsung's phones can offer features close to this flagship model? The Galaxy S7 Edge, with a 5.5-inch screen and options for 32 and 64GB of internal memory, runs on Android 6 but lacks the ability to work underwater and perform underwater filming. However, the battery of this Samsung model is 3600mAh, while the Note 7's battery is 3500mAh. Additionally, the S7 Edge weighs 157 grams, while the Note 7 weighs 169 grams. Now that Samsung customers must replace their Note 7 with models from the Galaxy S7 series, actions have been taken to improve the conditions of these phones and attract customer interest, hoping to dissuade them from returning their devices and opting for another brand. In this context, Samsung has released a new update for the Galaxy S7 and S7 Edge, which adds new features to the always-on display after receiving the update. The always-on display raises concerns about battery drain, but according to the specifications of this update, for every hour the display is on, battery consumption is reduced by one percent to prevent this issue. Considering the option of exchanging the Note 7 for another Samsung model is a strategy to mitigate the company's losses, as there is a possibility that if it fails to exit the current crisis, Samsung could face a serious crisis and lose its ability to recover and return to the competitive world. On the other hand, the news of the unveiling and sale of the Galaxy S8 may prompt some Note 7 owners to get their money back and wait for this model from Samsung. According to unofficial reports released by Samsung so far, contrary to market expectations, the company will introduce its next product in February 2017, following the routine of previous years. It was expected that the unveiling of the new Samsung model would occur before the new Gregorian year, given the halt in production and sale of the Galaxy Note 7. However, the introduction of the next generation of this South Korean company's phones, the Galaxy S8, has been announced for February 26 (March 8) at the Mobile World Congress in Barcelona. The launch of this device, like other emerging models from this company, will begin in March. Given the necessity of maintaining the market for Samsung and clearing negative perceptions from customers, the focus on making the Galaxy S8 flawless is a serious concern for the company. Apparently, two different models of this series will be produced, one with a 5.1-inch display and the other with a 5.5-inch display. Additionally, the Galaxy S8 smartphone will be equipped with a dual rear camera, one 16-megapixel and the other 8-megapixel. It is said that the processors of this model will have significantly more power than current models and will also be more energy-efficient. Furthermore, some reports indicate that this phone will be waterproof. Since September of last year, Samsung has been in shock twice due to the battery issue of the Galaxy Note 7, incurring billion-dollar losses each time. The first time was after several initial reports about Note 7 fires, leading to the decision to fix the battery issue and collaborate with another battery manufacturer to prevent the recurrence of such incidents. At this stage, Samsung announced that it incurred a loss of one billion dollars. However, the recent recall to completely stop production of this model and retrieve sold devices is likely to impose a $17 billion loss on the company. This figure was supposed to be the revenue from the sale of 19 million Galaxy Notes worldwide. In the meantime, Apple, one of the serious competitors, sees the iPhone 7 model as out of the running and, contrary to the decline in Samsung's stock value, is witnessing an increase in its own stock value.