The company confirmed on Tuesday that it had permanently shut down production of the Galaxy Note 7, bringing to an end the saga of the troubled, fire-prone handset. On Monday night, it had issued a warning to users to power down and turn in their phones.
That's a good start, but Samsung will have a long way to go to win back the public's trust.
Samsung, after all, is facing an unprecedented crisis, different even from the massive Volkswagen recall from this year or even theTylenol debacle in 2010. The Korean electronics conglomerate was in enough hot water after the initial recall, but a second recall of replacement units raises questions about its judgment and ability to release a safe product. From a sales perspective alone, the loss of the Note 7 could cost $2.75 billion, according to Macquarie Research.
The residual effects in terms of consumer perception and its brand could be even more damning, and may extend to Samsung's massive line of products, from refrigeratorsto televisions to washing machines.
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