For Samsung, the fallout surrounding the Galaxy Note 7 continues, as it’s thought that the company has now gone into full damage control, with plans for 2017 perhaps now delayed as a result. Their bottom line is going to take a hit, and it’s possible that even the Samsung brand overall will be tarnished by this disaster. With a second recall for all Galaxy Note 7s, including second-hands models as well as those sold in the previously thought “safe” of province of China, it’s safe to say that the Galaxy Note 7 is now done and dusted. For employees that worked to put together the phone – as well as many other Samsung phones – in Vietnam, a hotbed for manufacturing like this, don’t appear to be all that worried, though.
As Reuters is reporting, the “Samsung town” of Pho Yen in Thai Nguyen, doesn’t appear to be concerned by the Galaxy Note 7 issues. Reuters spoke to over 10 different employees and the statement from Nguyen Thi Hang pretty much sums up the feeling there; “Recalling ( the Galaxy Note 7) doesn’t mean we are unemployed or such; Samsung also makes many other phones and new models, not just the Galaxy Note 7”. In fact, Samsung has invested over $14 Billion in Vietnam, and the town of Pho Yen was once dedicated to farming, but Samsung’s money and manufacturing plants have transformed the area into something far more industrial, where over 100,000 employees rely on the employment they get from Samsung, despite their monthly wages ranging from $180 to $300 a month. This is a figure that seems small to us, but is well above what the majority of workers can earn in a such a traditionally-rural region.
The Galaxy Note 7 disaster is no doubt going to haunt Samsung for some time, but for right now, it’s hard to tell just what sort of damage will be done in the long run. In monetary terms, Samsung will definitely be suffering, with their Q3 guidance recently slashed considerably. If this report from Vietnam is anything to go on, it appears as though Samsung won’t be needing to downsize or cut down on the numbers of workers. What the industry needs to realize, is that Samsung is far, far more than just the Galaxy Note 7 and it is likely the firm will recover healthily from this over time.