Published on February 27th, 2014 | by Mr Review0
Samsung Electronics’ Chinese Phone Blunder
Samsung has been found guilty for selling faulty phones to the Chinese consumer market, as reported by the Chinese state TV (CCTV). The complaints filed were mostly regarding their malfunctioning memory chips and poor repair service that was offered at the time.
Considering that Samsung have 14% of the market share on the mobile phone industry in China, they soon altered their policy in their report and offered free repairs to seven of their phone models.
As of late, Samsung has been in the firing line by the Chinese media.
Samsung, the South Korean based co-operation, gave their sincere apologies for the blunder they claimed was due to “management issues” and were very open towards media questioning.
Not only Samsung but…
At present, China boasts of being the second biggest economy on the globe and, not at least, one of the most populated countries on the planet. Due to the latter, China has helped certain foreign industries reach exponential growth on the global market, in most part, due to an increase in market share, in salaries and a fast growing economy.
However, with all the growth in global businesses comes scrutiny in China. For instance, Starbucks, an international Chain, were flagged by the Chinese media (CCTV) for charging more for their products in China than anywhere else in the world. It was believed that the high profit margin generated in China, due to low production costs, made it justifiable to upper their prices.
Even Apple were scrutinised for their warranty and repair policy on their products. CCTV was on the case, and complained for a whole fortnight until it took chief executive Tim Cook to apologise for such mishap. The Chinese media weren’t happy with the attitude Apple was portraying, who were said to be taking an arrogant, bossy and greedy approach.
Problems in Taiwan
Since April 2012, Taiwan’s fair trade commission fined Samsung a massive sum of $340,000, £210,000, or ten million in local Taiwanese currency. It came to light by the Taiwanese commission that Samsung were bribing consumers in Taiwan to ridicule their biggest competitors.
The blame then was shifted to a marketing company named Open Tide Taiwan, where they were hired to manage local marketing. The company hired a group of local bloggers and students to comment on Samsung’s rival products by writing untruthful criticisms about them. It was apparent that Samsung were in on this work, as they were getting periodic reports on the commenting provided by Open Tide Taiwan.
The Chinese commission fined Open Tide Taiwan 3 million Taiwanese dollars for their part in the scandal. Samsung’s response to this was that it was an “unfortunate” situation and was misled by their company’s “fundamental principles”.
Earlier on in the year, Samsung were again in trouble when they were fined by the Taiwanese authorities for the camera on the Galaxy Y duo, where an advertisement misled the consumer audience.