Samsung SDI grappling with reputational damage after Galaxy Note 7 debacle
In a Wednesday report, Reuters has revealed that the Galaxy Note 7 fiasco has damaged the reputation of Samsung's battery affiliate Samsung SDI, and the company is apparently struggling to secure future business.
Samsung SDI is bigwig South Korean device maker Samsung's largest in-house parts supplier. The company was created in 1970, as a joint venture - for manufacturing vacuum tubes - between Samsung and Japan's NEC. Samsung SDI contributed significantly to the rapid growth of Samsung Electronics, thanks mainly to the TV and smartphone screens and batteries it manufactured.
Samsung SDI has taken most of the blame for the Galaxy Note 7 debacle, which was the outcome of the handset's potentially explosive batteries. Since SDI was the major supplier of Galaxy Note 7 batteries, the company's market value plunged by nearly one-fifth ever since the battery issue with the handset first emerged.
Moreover, with the Galaxy Note 7 crisis causing a reputational damage to SDI, device manufacturers have become somewhat cautious with regard to batteries provided by the company. As such, SDI is now quietly reassuring its anxious clients - including tech biggie Apple - that its batteries are safe.
Meanwhile, so far as the impact of the Galaxy Note 7 recall on Samsung Electronics is concerned, a recent Reuters/Ipsos opinion poll has revealed that the recall has not had much impact on US consumers' willingness to purchase Samsung handsets in the future.