Enlightenment behind the Samsung explosion door: innovation under pressure

Enlightenment behind the Samsung explosion door: innovation under pressure

Abstract In a cruel market, if you make a mistake, you may be wrong. For Samsung, which is deeply involved in the "battery explosion" incident, the negative impact is not as simple as the decline in profits, and there is a brand crisis. Due to weak market demand and competition...
In a cruel market, if you make a mistake, you may be wrong. For Samsung, which is deeply involved in the "battery explosion" incident, the negative impact is not as simple as the decline in profits, and there is a brand crisis. Due to weak market demand and fierce competition, Samsung has not been able to shake off the fact that revenue has been sluggish since 2013, and the scale of mobile business is also declining. And Apple's standing and the rise of domestic mobile phones made Samsung unprepared.
If Apple started the era of touch-screen smartphones, then the big-screen mobile phone display is indeed the first product differentiation highlight by Samsung Electronics. In 2011, Samsung released the first generation of Galaxy Note, which opened the first line of large-screen mobile phones. Large-screen mobile phones have also become the selling point of Samsung Electronics, and have stimulated the explosive power of users to help them develop into the world's largest smartphone manufacturers. Therefore, the importance of the Galaxy Note series to Samsung mobile phones is self-evident.
However, entering 2014, Samsung has experienced unprecedented pressure. In the high-end market, Apple's large-screen mobile phone iPhone6 ​​and iPhone6 ​​Plus robbed Samsung's large-screen mobile phone market share. In the low-end model market, Samsung is also facing pressure from mobile phone manufacturers in China and India.
It can be said that since 2015, the global smartphone market has changed dramatically. Samsung and Apple, who once joined forces to capture 99% of the profits of the entire market, have gone astray in the past two years: on the one hand, Samsung’s market share has fallen sharply, and on the other hand, Apple’s new iPhone has continued to be popular.
At present, Note7 is like a time bomb in the hand, which makes consumers have a serious alert, and the impact is undoubtedly worse. At this time, Samsung has no time to consider how to regain market share, and it is difficult to predict whether it can maintain its current status.
In fact, on innovation and R&D strength, Samsung Electronics is not a company with no “technical content”. It is in the leading position in the layout of mobile phone core components such as processor chips, image sensors and screens. But Samsung, which has a complete industrial chain and component core technology, is on the battery. This time, industry speculation on the one hand is that the impact of the accident is rather bad; on the other hand, Samsung and battery suppliers have adopted new technology on the Note7 battery to improve performance, but these technologies have not withstood the test, which caused tragedy.
It is understood that in order to improve battery performance, supplier SDI has begun to focus on research and development of new technologies such as energy density, fast charging, LOT batteries, and trying to become an industry leader. The industry speculates that Note7 batteries should adopt new technology. Obviously, they are too aggressive. However, Samsung’s aggressiveness is also reasonable. After years of development, the intelligent machine has encountered a technical bottleneck. Whether it is hardware or software, it is difficult to make breakthroughs such as non-intelligent machines to smart phones. As mentioned above, Samsung is under pressure from the back and the recovery. As a high-end model, Note7 bears the heavy burden of Samsung's profit and brand building. It is Samsung's long-term research and is ready to compete with Apple and Huawei for the global market share.
According to data released by Samsung on September 2, its customer service center received a total of 35 reports on the Galaxy Note 7 explosion worldwide. According to the Canadian Health Department, Samsung’s battery fire reports in the United States have exceeded 70. For Samsung, the explosion of Note7 is fatal, and it also sounds the alarm for the entire industry. Because the phone can be recalled, the product can be improved, but more importantly, consumers will dare not buy your phone in the future. On September 28th, Note7 will be resold in South Korea, and it will be difficult to see a buying boom at the time of listing.

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