Samsung SDI, Note 7 battery supplier, struggles to regain customers trust

Samsung SDI, Note 7 battery supplier, struggles to regain customers trust
Samsung's reputation appears to have survived the Galaxy Note 7 saga relatively unharmed, according to a recent survey. However, the company it blamed for the faulty flagship doesn't seem to be that lucky.

All Hell has broken loose for Samsung SDI – the Note 7 battery supplier blamed for the fires. Despite the fact that batteries by other affiliates also erupted in flames, the damage to SDI's reputation has already been done and the company still struggles with the aftermaths.

According to Reuters, Samsung SDI managed to convince current partners, including Apple, its batteries are safe, but struggles to find new customers for their products. Immediately after taking the fall for Samsung's mishap, SDI's market value dropped by 20% and hasn't regained its previous levels since.

“Since the first recall, we've had many inquiries from our clients, including Apple, asking whether batteries used in their products are safe,” said an SDI employee, who wished to remain anonymous. “We are also asking ourselves whether we should have done it [the Note 7 battery] this way, or whether there could have been other ways.”

A lot of analysts believe that by taking one for the Samsung team, SDI has created a long-term problem for itself. “This will have more of an impact on new customers than on existing customers,” said S.R. Kwon, analyst at Dongbu Securities. He also stated that SDI will probably keep its current partners, but will have a hard time on attracting new ones.

Samsung SDI holds a 25% market share in small device batteries, but it's also trying to expand to the automotive industry and other sectors. Its progress there might be slowed down by the Note 7 fiasco, though. One of SDI's automotive customers also commented on the situation. “The affected battery is totally different to the product we use so the issue doesn't really impact us,” a representative for the company said. “But we're not happy.”

We can only assume that other companies that buy power packs from Samsung SDI feel the same way, so the battery supplier will have a tough time rebuilding trust in its products, despite the high chance of being innocent for the Note 7 issues.

Samsung Electronics has yet to make any results of its investigation public, so at this point in time, SDI might be taking the fall for something, which was not its fault.

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source: Reuters

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10 Comments

1. sissy246

Posts: 7035; Member since: Mar 04, 2015

But they were x-rated by more then just Samsung and found to have defects I thought.

2. sissy246

Posts: 7035; Member since: Mar 04, 2015

But I don't believe either that just the battery. I think it was a combination of the phone heating up and the defective batteries not being able to handle it.

5. Klinton

Posts: 1408; Member since: Oct 24, 2016

No! They really thought they found something on the battery, but later they said it was not the reason. No Samsung, neither any US lab found any reason for ''explosion reports'' yet. And mysteriously, no one Note7 ''exploded '' after the ban. Until Samsung (and US labs) don't find, and publish what was the REAL reason for ''explosion reports'', there is no way the ppl to be calmed. And the media will attack next Note on this base

8. sissy246

Posts: 7035; Member since: Mar 04, 2015

Yeah I knew in the second bunch that they haven't found the cause but was on sure on the first bunch.

3. sissy246

Posts: 7035; Member since: Mar 04, 2015

PA Why if my post is just a little on the long side the post button goes away. How do some post mile long post and they don't lose their button. Sorry for the off topic

4. aegislash

Posts: 1465; Member since: Jan 27, 2015

The comment mechanics on this website are a joke. I mean...still no editing comments on mobile unless you switch to the desktop version of the site? At this point they're better off just switching to Disqus.

6. darkkjedii

Posts: 30905; Member since: Feb 05, 2011

When I'm in the market for a new battery for my Vette, and I see SDI, I'm moving to the next rack. Samsung, please don't use their batteries in the 2017 beasts. Hell I'd even take an Everready over SDI.

7. KingSam

Posts: 1403; Member since: Mar 13, 2016

And only recently they fixed voting on mobile site. And it's a mobile website! Disqus is great.

9. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Seeing there is nothing to prove the battery is the actual fault, Samsung SDI should focus on that to their customers. Just tell them. Samsung cane even find what the issue is. So since they don't know what the issue is, they cant legally say the battery is the fault. After all, phones caught fre that even have their battery as well. Though not as many.

10. sissy246

Posts: 7035; Member since: Mar 04, 2015

I just wish someone could come up with something better and safer. Li-ion batteries are so dangerous.. It was just on the news today showing another E-cigarette that caught fire in a guy's pants.

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