IDC Survey Looks to Assess Damage to Samsung Brand After Note 7 Recall

FRAMINGHAM, Mass.–(BUSINESS WIRE)–#IDCsurvey–Results from a recent International Data Corporation (IDC)
survey, U.S.
Smartphone Owners’ Reaction to Samsung Galaxy Note 7 Recall (Doc
#US41878416), show that Samsung faces some short-term challenges but
nothing that will darken its long-term prospects.

IDC surveyed 1,082 U.S. consumers through an online survey on October
17th and 18th, four days after Samsung decided to halt production on the
Note 7. The survey focused on three groups of consumers: current Samsung
smartphone owners (507), past Samsung smartphone owners (347), and
smartphone owners who have never owned the Samsung brand (228). Due to
the limited installed base, just 24 Note 7 users were captured in the
survey; as such, data in those questions should be viewed as directional
only.

“As challenging as the Note 7 recall has been for Samsung, the data in
this survey indicate that most consumers are unaffected by this, which
should be good news for Samsung,” said Ramon
T. Llamas, research manager, Wearables and Mobile
Phones. “For the minority of Samsung customers who are unlikely to
purchase a Samsung smartphone in the future, the company has to win back
consumer trust. Thus far Samsung has offered monetary incentives but, at
the heart of the matter, consumers want to learn the root causes of the
problem and how Samsung intends to fix them.”

Some key results from the survey include:

• Half of the 24 Note 7 owners polled said they have or will choose an
  Apple iPhone to replace their recalled phone, while 17% said they
  would choose another Samsung. Most said they will return their phone
  through a carrier’s physical store.
• The Note 7 recall doesn’t appear to be harming the broader Samsung
  brand so far. A majority of respondents said it would not impact
  future decisions to buy other, non-smartphone Samsung products such as
  televisions and appliances.
• Survey participants’ view of Samsung’s response to the Note 7 recall
  was largely neutral to positive; surprisingly about 13% hadn’t heard
  about the recall when polled.

“The Note 7 recall along with all its repercussions, represents a
significant event in the world of consumer electronics,” said Anthony
Scarsella, research manager, Mobile
Phones. “Although the recall may have an adverse impact on the brand
in the short term, the truth is that Samsung remains the clear market
leader in the worldwide smartphone market. Moving forward, Samsung will
need to put the Note 7 to rest as quickly as possible and focus all
efforts on producing a stellar Galaxy S8 come next spring. If
successful, consumers will quickly forget the Note 7 fiasco if the
upcoming S8 can deliver on all fronts.”

For more information about this research please contact sales@idc.com.

About IDC
International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC’s analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG), the world’s leading media,
data and marketing services company. To learn more about IDC, please
visit www.idc.com.
Follow IDC on Twitter at @IDC.

Contacts

IDC
Anthony Scarsella, 508-935-4712
ascarsella@idc.com
or
Michael
Shirer, 508-935-4200
press@idc.com