Dive Brief:
- Although the Samsung brand took a hit from the recent string of Galaxy Note 7 battery problems, there’s likely no lasting damages, according to new research conducted by International Data Corp. (IDC).
- While only 24 Note 7 users were surveyed, half of them said they would be switching to iPhones while 17% said they would stick with Samsung.
- One surprising result from the study was 13% of the polled group hadn’t heard that the smartphone had been recalled.
Dive Insight:
For marketers looking to reach Android users, Samsung's phones owners have been a leading target audience. If the recent problems with the Note 7 are isolated, this is likely to remain the case. However, the battery fiasco unfolded at a particularly bad time, coinciding with Google's launch of its Pixel phone, which is getting good reviews. This means Samsung will need to rebound quickly if it is to convince consumers to buy its next phone.
While smartphone adoption growth rates are reaching maturity, the landscape is still fluid as hardware manufacturers and consumers continue to chase the next great innovation.
"The Note 7 recall along with all its repercussions, represents a significant event in the world of consumer electronics," said Anthony Scarsella, research manager, Mobile Phones, at IDC in a press release. "Although the recall may have an adverse impact on the brand in the short term, the truth is that Samsung remains the clear market leader in the worldwide smartphone market. Moving forward, Samsung will need to put the Note 7 to rest as quickly as possible and focus all efforts on producing a stellar Galaxy S8 come next spring. If successful, consumers will quickly forget the Note 7 fiasco if the upcoming S8 can deliver on all fronts,"
Reputation management is an ongoing marketing challenge starting with handling social media comments all the way to more challenging problems like the one Samsung faced with the hardware issue in its flagship smartphone.