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SAMSUNG WOES BIGGER THAN NOTE 7 CRISIS Samsung’s Note 7 recall is a giant, expensive mess. The cost of the recall will reach over $1 billion , and a further $5 billion could be lost. But Samsung has $23 billion in cash . It can deal with any losses generated by the Note 7 fiasco. The situation is bad, but Samsung can fix it. What Samsung cannot easily fix is the recall’s effect on how the public see its smartphones, and that is arguably the biggest challenge that the company is facing right now. Take the case of the 6-year boy from New York who suffered injuries when a Samsung phone “exploded” in his hands. In the rush to put the news out, media assumed that the phone must be a Note 7 , because that’s the phone that Samsung is recalling and that’s what everyone’s talking about. But until a couple of days ago , it was revealed that the phone was...
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