A new Korean report today states that it's now being predicted that Samsung Electronics will dispose all Galaxy Note 7s that are going to be collected due to discontinuation. Right up to the last moment when the decision was made to discontinue the Note7, Samsung was actually preparing to sell refurbished Note7's to developing countries such as Africa. The idea was to sell the phones at low to medium discounted prices to help improve their damaged image, but the plan was scrapped.
The report further noted that in total 4.7 million Note7's were produced; 2.5 million at the time of the first recall and an additional 1.8 million units after the recall. Samsung has been unable to figure out the cause of the fires until this day and because of that, the refurbished plan could not be put into action. Now it's too late.
In 1995 when Samsung had a similar problem with mobile phones, Chairman Lee Kun-hee ordered the faulty mobile phones to gathered and burned in what they called the 'Burning ceremony of phones." Their worth at the time was about US$43 million. The phones were ordered to be burned and smashed with hammers as noted in our cover graphic.
Chairman Lee Kun-hee's son and heir apparent who officially joined the company board last month as a step towards formalizing his role as the next head of Samsung, said he won't call for a similar 'burning ceremony' as his father did because of the sheer number of smartphones involved would most definitely cause a hazardous pollution problem.
Samsung couldn't figure out what the Note7's fires were caused from and now they're just as confused as to how to handle the destruction of these smartphones that will take some time to collect.
Samsung's Sermon on Mount Moment
In related news, Samsung Electronics held a calm commemoration of their 47th anniversary of their founding with a message saying 'let's use this difficult situation as an opportunity to vault ourselves to the top again'. The commemoration was held at Samsung Digital City on Tuesday. Vice Chairman Kwon Oh-hyeon along with a group of 400 executives, employees and former presidents were in attendance.
Kwon used the occasion as a pep rally to recharge the company after the embarrassing Note7 Crisis. Kwon stated that "There is no sign of improvement in global economy due to low growth and uncertainty and Samsung Electronics is exposed to various mixed risks that it has never experienced before. We have to wonder whether or not this difficult situation is a result of complacency and use this situation as an opportunity to start new again."
Although Samsung Electronics is facing an unprecedented situation of recall and discontinuation of Galaxy Note 7, Vice-Chairman Kwon encouraged Samsung Electronics' employees not to be discouraged but rather use this time to develop Samsung Electronics much more. He also emphasized that internal systems of every sectors must be examined and thorough crisis management systems must be established. His intent is to vault Samsung Electronics by one more step by examining conventional systems of businesses, groups, and individuals and work approach and change things that need to be changed and improve problems.
Kwon continued by stating that "We need to be more innovative in order to strengthen technical leadership and differentiated competitive edge that are basis of business. We need to enhance our technical leadership and continuously create differentiated products and services that add more values to daily lives through creative and outstanding ideas."
Kwon ended by stating that "We have long history and potential in overcoming crisis and growing from it. We need to once again examine our work approach, innovative thoughts, and point of view towards our customers and thoroughly improve them and use this situation as an opportunity to vault ourselves again."
In reality, the smartphone burning ceremony had to be ruled out because it could have been misinterpreted by the general public that the millions of Note7's were actually exploding after being recharged for the last time. (Ha!)