Another Big Recall Could Further Threaten Samsung

Just weeks after recalling 2.5 million Galaxy Note 7 smartphones because of exploding batteries, Samsung is announcing another voluntary recall.

This latest recall involves 34 models of top-loading washing machines made between March 2011 and November 2016. A total of 2.8 million machines are potentially affected.

According to the U.S. Consumer Product Safety Commission, the top of the washing machine can unexpectedly detach from the chassis during use, which could pose an injury risk. Nine people have already reported washing machine-related injuries caused by Samsung machines.

It’s likely this recall will cost Samsung billions. It could cost even more than the Note 7 debacle, since it’s a whole lot easier to ship 2.5 million smartphones than it is to transport 2.8 million washing machines.

The bigger issue is what this does to Samsung’s trust among consumers.

Most people are forgiving when a company issues a defective product. They realize faulty devices make it through the cracks. But that trust is easily eroded when we start talking multiple devices across different product lines.

The line between trusting a brand and labeling it junk is very fine. Once customers have crossed over to the wrong side, it’s very difficult to get that trust back.

This is all likely good news for Samsung’s major North American competitors in the smartphone market. Apple Inc. (NASDAQ:AAPL) is Samsung’s major rival, and Alphabet Inc. (NASDAQ:GOOGL)(NASDAQ:GOOG) recently released its own high-end phone, the Pixel. They’ll benefit from any loss of Samsung’s goodwill.

Tech Insider