How a 'Boring' iPhone Led to Samsung's Big Mistake

Samsung rushed things to get flashier phone to market quickly
By Rob Quinn,  Newser Staff
Posted Sep 20, 2016 4:03 AM CDT
Updated Sep 20, 2016 6:03 AM CDT
Rush to Market Blamed for Exploding Phones
A color blending feature of the Galaxy Note 7 is demonstrated in New York.   (AP Photo/Richard Drew, File)

In the race to sell smartphones, it turns out that Apple was the tortoise and Samsung was an exploding hare. Sources tell Bloomberg that Samsung rushed the Galaxy Note 7 to market to take advantage of what the company had discovered would be an unexciting iPhone 7 from Apple. The sources say suppliers were under pressure to quickly deliver new features for the Note 7—including a more powerful battery—which resulted in a production error at one supplier that caused faulty batteries, which were not uncovered during the rushed testing process.

Reports of battery fires and explosions after the Note 7 went on sale led to a global recall, which experts say was bungled by Samsung. "Clearly, they missed something," says Bloomberg analyst Anthea Lai. "They were rushing to beat Apple and they made a mistake." The debacle is believed to have wiped around $14 billion off Samsung's market value, while Apple's stock price is soaring despite what Brian Solomon at Forbes calls a "boring" new iPhone that offers slight refinements instead of eye-catching new features. "It appears that more of the same, rather than top-of-the-line innovation, was the way to win this year," he writes. (More Galaxy Note stories.)

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