Samsung’s recall of the Galaxy Note 7 is said to have cost the company $1 billion, and that’s not taking into account the potential sales that have been lost, a hit on the company’s market value, as well as the tarnishing of their reputation that will be hard to build back up. The company was in the process of doing that when a replacement unit of the Note 7 caught on fire on a Southwest airline.
This has prompted the CPSC to look into the matter, and for those unfamiliar, the CPSC is the government body for the US in charge of recalls, and companies usually have to go through them if they want to issue any recall. Now according to a report from Bloomberg, a second round of recalls could very well be possible, according to two former US safety officials.
According to Pamela Gilbert, a former executive director of the consumer agency, “If it’s the fixed phone and it started to smoke in his pocket, I’m going to guess there’ll be another recall. That just doesn’t sound right.” This was seconded by Nancy Nord, a former chairwoman of the CPSC.
Nord says that second recalls are extremely uncommon but in this case, it could be a possibility. “Certainly [Samsung] could [issue] another recall, if it appears this is something beyond an aberration.” Nothing has been decided or announced yet so this is just speculation on the part of the former safety officials, but safe to say that a second round of recalls will deal a massive blow to Samsung’s reputation that will be extremely hard to recover from.