L0VELY PR0FESSI0NAL

UNIVERSITY
Report
On
Survey of Impact of Samsung galaxy s7 on the sales of
apple and other premium mobile brands.
MBA (Information Technology)
SECTI0N:Q1652

Submitted By:
Nivransh Dev Gupta(A11)
abhinandan (A8)
chavali sri lalitha (A12)

Survey

Submitted T0:
mr. vishwas gupta
(asst. prof.)

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INDEX

Serial no.

Topic

Page no.

Introduction

Objective

Main problems

5-6

with galaxy s7 and

note7

Survey

Literature survey

7-11

Methodology

12-14

Data analysis

15-19

Conclusion

20-21

Reference

22

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(1)INTRODUCTION
Samsung has recalled its new Galaxy S7 smart phone after reports it can overheat and even
explode. The company said it conducted a thorough investigation and found a battery cell
issue. (It has now stopped production of the phone.)
There have been dozens of reported cases and 2.5 million phones have been produced. While
that figure is relatively high (batteries typically fail at a rate of 1 in tens of millions), its still
far from common.
Battery failures are exceedingly rare, says a chemical engineer at University College
London. Any kind of fault does attract a lot of media attention and can really affect the
reputation of a product that relies on the battery.
With the failure of Samsung galaxy s7 it has been seen in the market that people are
inclining towards other high end cell phones other than Samsung. This faulty failure
has given a room for growth to other companies other than Apple also. Huawai being
the most benefited company from this disaster along with Apple.
Right behind Apple, Huawei will gain the second biggest benefit of the Note 7's failure,
particularly due to its foothold in most of the countries. With the impending launch of the
Mate 9 in the fall, the analyst looks at Huawei as the best alternative for Note 7 users who are
leaving Samsung's smart phone line up but seeking to remain in the Android family.

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(2) OBJECTIVE

This work is all about how other companies are reacting to the failure of galaxy s7
(Samsung), laying stress on how it has impacted the sales of Apple and other Premium
mobile making companies .Survey has been the most critical and indispensable part of this
case work.

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(3) Main Problems with Galaxy S7 and Note 7

NOTE 7
1) Exploding note 7 : This has been the main failure in the manufacturing of this phone.
Many examples have been faced where battery explodes and company had to see
people losing the expectations. This has been the root cause of calling back note7 by
the Samsung company.
2) HIT or MISS iris scanner: The Galaxy Note 7's new iris scanner is an interesting
piece of technology, but it's not wholly successful. It is found to be a little finicky to
use, and some on the internet seem to be struggling to get it working reliably.
3) SCRATCH PRONE display: Pretty soon after the release on galaxy s7 reports
started coming in that the display is more prone to scratches than previous lower
models hence a big manufacturing default or a big scam?
4) LIGHT BLEED issue : It has been observed that complaints started pouring in very
soon about the light beaming out of edges of the phone around the display screen.
This annoys customers somehow!
5) CAMERA NOT BOOTING UP: Some users are reporting that the Galaxy Note 7's
otherwise excellent camera isn't booting up, and a failure message appears. This may
be the phone's Smart Stay feature interfering.
6) SPEAKERS audio quality: The audio quality after submersion under water is not up
to the mark ,contradicting what company said on the launch.
7) APP tray troubles: People are finding it confusing to use the new format of app tray,
mainly used for displaying apps on your cell phone. It pushes the most recently
installed apps to the top, which, for those who are used to simple alphabetical order, is
pretty bewildering.
Galaxy s7
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1) WIFI trouble: Reports suggest that some Samsung Galaxy S7 owners are
experiencing problems with Wi-Fi, including (but not limited to) Gmail not syncing
properly over a wireless connection. This seems to be a bug that requires addressing
by Samsung itself, but until then it seems as if the problem might be related to
Bluetooth
2) POWER and VOLUME buttons: Some have reported that the power and volume
buttons stop working on their Galaxy S7. Needless to say, this is a pretty major issue
if you're affected.
3) OVERHEATING: This is one of the major issue with this galaxy model. Over
heating always remains the main concern of testing team and eliminating this with
increasing power consumption remains the toughest challenge.
4) Camera errors: this was one of the biggest bugs in this mobile phone. With a high
no. Of complaints about camera showing loading errors.

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(4) LITERATURE SURVEY

a) A survey conducted before shows that even though the failure of Galaxy s7 has
been disasterous but still 86 percent of the people owning Samsung products
continue to reamin loyal towards the company with future wish of buying
Samsung products.
(Source :- http://www.sammobile.com/2016/11/04/survey-finds-that-despite-note-7troubles-86-percent-of-smartphone-users-open-to-buying-a-samsung-phone/)
ReportLinker conducted a survey of 500 smartphone owners in the United States and even
though 60 percent of the respondents believed that Samsung didnt handle the Galaxy Note 7
recall as well as it should have, 86 percent of them said that they would consider Samsung
again in response to the question Next time you upgrade your smartphone, to what extent
would you consider Samsung?.
The survey is by no means representative of all smartphone users but thats just the thing
about surveys, you take a good enough sample size and base your conclusions on their
answers. Previous surveys have also suggested that people are not completely ruling out the
idea of ever buying a Samsung smartphone again.
Samsungs loyal fans will surely not be leaving the company behind as most of them are now
excited to see what the company has in store for them next year. Samsung is expected to
come out swinging with the Galaxy S8 early next year to show that its capable of bouncing
back from one of the worst product launches in its history.
b) APPLE and HUAWAI may profit the most from the failure of galaxy s7 but
profits may have already peaked out.
(Source:http://www.macrumors.com/2016/10/17/apple-and-huawei-benefit-note-7/)
Apple and Huawei will be the biggest beneficiaries following the discontinuation of
Samsung's Galaxy Note 7 line, according to research conducted by KGI Securities analyst
Ming-Chi Kuo. The two companies will mainly see orders increased by users looking for a
smart phone with dual camera support, including Apple's iPhone 7 Plus and Huawei's
upcoming Mate 9.
While Kuo believes Apple will benefit majorly following Samsung's troubled Note 7, the
analyst also says that those benefits are "largely reflected in raised forecasts," and not as
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much in actual iPhone shipping numbers. Of the original 12-14 million Note 7 units expected
to ship in 2016 before the exploding battery drama, Kuo estimates 5-7 million Note 7 users
may switch to iPhone, mainly expected to be the iPhone 7 Plus.
Because of this, the analyst believes Apple's biggest benefits of the Note 7 discontinuation
have already "peaked out." It's estimated that it will take Apple between 3 and 5 weeks to
accommodate additional orders of the iPhone 7, especially "if the company does not expand
the current production capacity of the iPhone 7 Plus."
Right behind Apple, Kuo believes that Huawei will gain the second biggest benefit of the
Note 7's failure, particularly due to its foothold in China and Europe. With the impending
launch of the Mate 9 in the fall, the analyst looks at Huawei as the best alternative for Note 7
users who are leaving Samsung's smartphone lineup but seeking to remain in the Android
family.
c) The NOTE 7 nightmare that Samsung created.
(SOURCE:http://www.forbes.com/sites/ewanspence/2016/09/20/samsung-galaxynote-7-battery-failure-danger/#763748424200)
In the week where the iPhone 7 and iPhone 7 Plus hit the retail shelves and then promptly
sold out, Apples main rival Samsung has had to deal with the increasingly caustic fallout
from the flawed battery in the Galaxy Note 7 phablet.
The battery issues in the Galaxy Note 7 caused a small number of units to overheat and
explode, and in its investigations, Samsung discovered a flaw in the construction. This led to
a global recall of the phablet, alongside warnings for every one of the 2.5 million handsets
sold to be powered down and not recharged. The Note 7 units could be exchanged for another
handset, or consumers could wait for replacement Note 7 units to become available.
The Galaxy S8 team was already under pressure and the success of the iPhone 7 with its
incremental changes will increase that pressure. The Note 7 has placed even more stress on
the Galaxy S8, but it also increases the pressure on all of Samsung. Lesser companies have
wilted under such strain. Samsung needs to find the right balance of humility, honesty,
strength and fortitude to weather the Note 7 storm without losing its claim to be one of the
top smart phone manufacturers in the world

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d) Samsung,s high end galaxy S7 fails consumer report.

(SOURCE:http://appleinsider.com/articles/16/07/08/waterproofgate-samsungs-highend-galaxy-s7-fails-consumer-reports-tests)

Consumer Reports said it can't recommend the ruggedized Galaxy S7 Active, which sells at a
$100 premium over the standard model, because it doesn't meet Samsung's own claims for
water resistance.
According to an AP report, Consumer Reports director of electronics testing Maria Rerecich
noted that she was surprised the model failed, but purchased two models and repeated the
test.
"We bought two and they both failed" - Consumer Reports
Submerging the device, the report cited Consumer Reports as observing the Galaxy's "screen
flashed green and other colors and didn't respond to touch."
The leakage appeared to be due to fit and finish issues, as "tiny bubbles appeared on the
camera lenses."Samsung also claims Galaxy S7 Active can survive "drops of up to 5 feet on a
flat surface," but notes that Consumer Reports "did not test those claims."
Other Galaxy S7 models also failed Samsung's IP 68 waterproof claims . Parallel tests by
Square Trade back in March also noted that Samsung's advertised claims for water resistance
were inconsistent. On its own marketing page, Samsung claimed all of its Galaxy S7 models
were resistant to 1 meter (3.28 feet) of water for 30 minutes, which is defined by the industry
at IP 67.

e) A brief history of Samsung galaxy note 7

(SOURCE:http://time.com/4526350/samsung-galaxy-note-7-recall-problemsoverheating-fire/)
1) Reports begin circulating about devices catching fire
Tales of Note 7 devices catching fire begin to spread. Samsung receives 92 reports of
batteries overheating in Galaxy Note 7 phones in the U.S.; it says there were 26 reports of

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burns and 55 reports of property damage. A man in Florida says his vehicle caught fire when
the Galaxy Note 7 smartphone charging inside his SUV burst into flames.
The worlds three largest carriers by passenger traffic, American Airlines, Delta Air Lines
and United Airlines, say that employees will tell passengers at the gate and on board aircraft
to keep the Note 7 switched off until they deplane.
2) Phones recalled and replacements shipped
In early Sept., Samsung stops selling the Note 7. The U.S. Consumer Product Safety
Commission (CPSC) warns users to power down their devices and stop using them. It also
issues a voluntary recall of devices sold before Sept. 15.
In total, Samsung recalls 2.5 million of the new Notes across 10 worldwide markets,
including one million in the U.S. More than 500,000 replacement units of the device are
shipped to carrier and retail stores in the U.S.
A software update is also launched for the Note 7 to help owners distinguish whether or not
their smartphone is included in the recall. The software displays a green battery icon in the
phones status bar to indicate whether or not the phone has been affected.
The Journal reports that about 60% of the affected Notes in the U.S. and Korea have been
replaced, with about 90% of customers choosing to replace the faulty phone with a new
Galaxy Note 7 rather than get a refund or trade it in for a different type of phone.
3) Samsungs market value drops
Samsungs market value begins to plummet as shares fall to their lowest level in nearly two
months on Sept. 12. Investors wipe 15.9 trillion won ($14.3 billion) off the South Korean
firms market capitalization as a series of warnings from regulators and airlines around the
world raised fears for the future of the device.
Some said initially the Galaxy Note 7 could be the best smartphone ever, but now its
possible the phone will go down as the worst ever, IBK Securities analyst Lee Seung-woo
says, predicting weak sales in the fourth quarter.
Analysts say the recall could have a lasting impact on the $211 billion companys brand
image, which could derail a recovery in its smart phone market share against rivals like Apple

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Inc. Some estimate the firm might lose $5 billion won worth of revenue after accounting for
recall costs.
f) Samsung,s galaxy s7 and note 7 failure will only profit Apple.
(SOURCE:

http://in.pcmag.com/smartphones/108954/opinion/the-samsung-galaxy-

note-7s-demise-will-only-benefit-apple)
The Galaxy Note 7 is done. Kaput. Samsung chased its obsession with Apple's design
language right into a garbage fire. But the very fact that Samsung is so crazed about Apple
to the exclusion of every other company making phoneshighlights the unhealthy duopoly
on high-end smartphone sales in the US.
Opinions Ultimately, the Galaxy Note 7's doom comes down to physics. If the problems with
the new units are the same as the old ones, it's just too difficult to fit a battery cell with the
capacity Samsung sought into the space Samsung provided for it.
But it's worth asking why Samsung was trying so hard to squeeze so much power into so little
space. I think the answer comes down to some numbers I keep citing from Bay Street
Research: 91 percent of smartphones sold in the US on the most profitable service plans,
known as postpaid plans, are Samsung or Apple devices.I reel, daily, from those implications,
and the US's distorted mob.
What About Everyone Else?
In a healthy world, Apple's touch disease issues and the Galaxy Note 7's explosion problems
would drive at least some people to look at other manufacturers. The upcoming LG V20
would get a boost from people who want a big screen, but no 'splosions. Other folks would
look at the Google Pixel XL and Motorola Z Force Droid. Maybe the little-known ZTE Axon
7, a PCMag Editors' Choice, would get a bump. All of these devices bring different opinions,
viewpoints, priorities, and perspectives to the market.
I suspect none of that is going to happen. Galaxy Note 7 owners will switch to the Galaxy S7
Edge or the iPhone 7 Plus both great devices that will satisfy their owners, to be sure. But
the unhealthy duopoly, the nemesis obsession that led to these mistakes on Samsung's and
Apple's part, will continue. And I think we'll see mistakes like these again, as long as it does.

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(5) METHODOLOGY
Methodology followed in this work assignment is that of survey i.e. primary
methodology techniques are applied.
This paper described the survey process, consisting of three phases: (a) sample size (b) survey
execution (c) Data analysis and reporting of results was identified as an important third phase of
the survey process. This paper provided specific guidance for the design and implementation of
survey research
In this work assignment we have taken sample size of at least 50 people. With physical hard
copied survey questionaires being distributed to get respond from the people. And with the help
of data collected analysis has been done and a conlusion has been given .

What is survey research?

> Survey research is used: to answer questions that have been raised, to solve problems that
have been posed or observed, to assess needs and set goals, to determine whether or not
specific objectives have been met, to establish baselines against which future comparisons
can be made, to analyze trends across time, and generally, to describe what exists, in what
amount, and in what context.
> In survey research, independent and dependent variables are used to define the scope of
study, but cannot be explicitly controlled by the researcher. Before conducting the survey, the
researcher must predicate a model that identifies the expected relationships among these
variables. The survey is then constructed to test this model against observations of the
phenomena.
SURVEY STRENGHTS
>Surveys are capable of obtaining information from large samples of the population. They are
also well suited to gathering demographic data that describe the composition of the sample .
Surveys are inclusive in the types and number of variables that can be studied, require minimal
investment to develop and administer, and are relatively easy for making generalizations. Surveys
can also elicit information about attitudes that are otherwise difficult to measure using
observational techniques. It is important to note, however, that surveys only provide estimates for
the true population, not exact measurements.

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SURVEY WEAKNESS
>Surveys are generally unsuitable where an understanding of the historical context of
phenomena is required. Biases may occur, either in the lack of response from intended
participants or in the nature and accuracy of the responses that are received. Other sources of
error include intentional misreporting of behaviours by respondents to confound the survey
results or to hide inappropriate behaviour. Finally, respondents may have difficulty assessing
their own behaviour or have poor recall of the circumstances surrounding their behaviour.

BASIC TERMS INVOLVED

Nature of the study
A study concerned with finding out who, what, where and how is a descriptive study and it
has been successfully used in many studies/.
The Population
The population of interest in this study included the cell phone owning people or customers.
Sample size
A sample size of 50 was considered adequate for the study. Respondents were picked from
the sample frame disproportionately. The sample size was as follows: Students studying in
LPU; Staff members of LPU; people around the area of Phagwara ,Punjab :sampling was
used to pick respondents.
Data Collection
Primary data was collected using questionnaire method. Questions were both open ended and
closed ended. Drop and pick later method was used to collect the data from respondents. The
questionnaire was been divided into two sections. Section A was aimed at getting general
information about the customer. Section B was used to determine the perception of the
customer towards the personal selling practices of medical representatives.
Data Analysis
Percentages were used to summarize and reflect the relative weight of a specific process in
comparison with total number of responses. It was used to determine the status proportion of
different respondents. Frequency distribution was used to examine the pattern of responses to
each of the variables. Descriptive statistics was used to summarize the data collected on
perception variables
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(6) DATA ANALYSIS

1) Which mobile brand are you using?
Ans : According to the survey conducted almost 24% of the people use apple
mobiles and Samsung mobiles grabbing the place of highest used mobiles by
customers.
Lenovo is the second most used mobile brand by customers with almost 20 percent of
the customers using this brand.

Fig1: Brand usage as per gender and total customers.

2) What is your main purpose of using cell phones?

Ans: As per the results of survey including all the genders almost 40 percent of the
people used their smart phones for social media,after which followed playing
games was the second most thing for which mobiles phones were used.

Fig 2: purpose of using smart phones?

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3) What considerations are important to you when buying smart phones?

Ans: As per the survey and data collected more than 40 % of the people consider
specfications to be the most crucial part while buying a smart phone and brand being the
second most considered factor.

Fig 3: considerations while buying cell phones

4) Do you know about the failure of samsung s7?
Ans: As per the survey done before 70 percent of the people responded with yes
,when asked if they know about the failure of galaxy s7 and note 7. Only 30 percent
of the people were not aware about the issue.

Fig4: failure of s7?

5) Before the battery problem recal,what do u think about Samsung galaxy

products?
Ans: From the data collected it was observed that almost 50 percent of the people
were still liking the products of Samsung but had some obnoxious views about the
issues.

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Fig 5: coustomer,s perception

6) After failure of galaxy s7 and note 7 how much are you inclined towards other
companies?
Ans: As per the data collected it was seen that even though the Samsung product
failed people were neutral about their perception towards that company and were
not much inlined towards other companies, hence customer loyalty still prevails.

Fig 6: inclination towards other companies.

7) How many samung phones have you purchased before?

Ans: Collecting the information from the survey it was observed that almost 20 percent of
the population has never used a Samsung mobile before and rest of them have used it
before with the frequency of more than 2 being the highest i.e most of them had used
more than 2 phones of Samsung before.

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Fig 7: how many Samsung phones used before?

8) Which company cell phones you have buyed in past except Samsung.?
Ans: It was seen that most of the people are using apple and htc cell phones to the most
grabbing 30 to 40 percent of the market, with sony grabbing second spot at 20 percent.

Fig 8: phones buyed in past

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9) Which mobile phones do you prefer?

Ans: As per the survey conducted data was collected which gave way to the conlusion
that most of the people prefer to use apple mobile with the booming percentage of

almost 50 percent.
Fig 9: preference

10) Which company mobile do you prefer to use because of failure of galaxy s7?
Ans: As per the data collected it was observed that unexpectingly xiaomi was the next
choice of people after the failure of Samsung products with the booming percentage of
30 percent and next mobile they believe to buy is apple mobiles with 30 percent people
.

11) Do you wish to buy Samsung mobiles in future?

Ans: As per the data collected it was seen that although there was huge failure from
Samsung in delivering its services as mentioned, but still more than 65 percent of the
people were ready to buy the Samsung products in the future. Hence we can say there
has been a very little effect on companie,s customer trust and loyalty and the revenues in
future will remain unaffected.
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Fig 11: wish to buy in future

12) What will you do if Samsung offered exchange in recalling their product?
Ans: As per the data collected it was observed that 60 percent of the people were in
favour geting cash in return and 38 percent of the people were comfortable with
exchange offer

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(7) CONCLUSION
As per the survey conducted, conclusion reached was that although there was a huge failure
among samsung products but still customers had positive feed back towards Samsung.
But still the sales of other smart phones may be boosted with apple and xiaomi making the
most out of it.
1) It was seen that more than 40 percent of the people opted to buy xiaomi mobiles
because of failure of Samsung mobiles and almost 30 percent of the people opted
to buy apple in future if not Samsung mobiles as shown in figure b.
2) Out of these people when asked about their preference more than 40 percent
preferred to use apple mobiles and other brands like huawai except Samsung as
shown in figure a
3) When it came to people reacting to failure of Samsung s7 ,most of the people were
still willing to buy the Samsung products in the future ,they had 60 percent
proportion as compared to 40 percent not willing to buy in the future as shown in
figure c.
Concluding it over all it can be said that majority of the people still remain loyal to the
Samsung Company with a ratio of almost 60-70 percent.
Apple and xiaomi benefiting the most from this failure of Samsung galaxy s7 with
xiaomi leading ahead of Apple as more than 40 percent of the people preferred to buy
xiamoi in the future as compare to ratio of 20 percent in apple.

Fig a : Preference of mobiles

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Fig b: future choice

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Fig c : Customers willing to buy Samsung or not in the future

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(8) REFERENCES
1) http://www.sammobile.com/2016/11/04/survey-finds-that-despite-note-7-troubles-86percent-of-smartphone-users-open-to-buying-a-samsung-phone/

2) http://www.macrumors.com/2016/10/17/apple-and-huawei-benefit-note-7/)
3) http://www.forbes.com/sites/ewanspence/2016/09/20/samsung-galaxy-note-7-batteryfailure-danger/#763748424200

4) http://appleinsider.com/articles/16/07/08/waterproofgate-samsungs-high-end-galaxys7-fails-consumer-reports-tests

5) http://time.com/4526350/samsung-galaxy-note-7-recall-problems-overheating-fire/
6) http://in.pcmag.com/smartphones/108954/opinion/the-samsung-galaxy-note-7sdemise-will-only-benefit-apple)

7) BRANDINGBRAND.COM
8) The economic times (September 23 2016) pg 1

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