Samsung’s Defective Product

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Samsung’s Defective Product

© georgeclerk / iStock Unreleased via Getty Images

What are the things Americans see recalled the most? Cars. Baby strollers. Exercise equipment. Samsung has extended that list to washing machines. It built 663,500 that have a fire risk.
[nativounit]
Those being recalled are part of Samsung’s Samsung Top-Load Washing Machines. According to the Consumer Product Safety Commission. The danger is that these can “short-circuit and overheat, posing a fire hazard.” These were bought at Best Buy, Costco, The Home Depot, and Lowe’s and additional appliance stores nationwide. Some were bought online at Samsung.com between June 2021 to December 2022 at price points between $900 and $1,500. Problems have been reported with 51 machines.

The Samsung issue, which can be fixed via a software download, shows how a relatively few defective product reports can undermine a company’s brand value. The CNN story about the machines carried the headline, “Samsung recalls more than 660,000 washing machines after fire hazard reports .” Similar headlines ran at CBS and ABC, most of their local TV states, and were posted on Twitter. Certainly, tens of thousands of people saw these.

Samsung already knows if the recall has hurt the sales of these washing machines. So do managers at Best Buy, Costco, and Lowe’s. Retailers may have pushed the machines to the back of their appliance sections or stopped selling them entirely.

Samsung management is left to wonder how the washing machines got onto the market at all. Modern manufacturing is supposed to be sophisticated to detect these products before products like they are shipped.

Samsung’s sales of washing machines will be stung, and the repairs will cost it something, although this is almost certainly very little. How its affects the public’s new of its washing machines is another matter.
[wallst_email_signup]

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Our $500K AI Portfolio

See us invest in our favorite AI stock ideas for free

Our Investment Portfolio

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618