Few things motivate Samsung employees like the opportunity to take advantage of weakness at Apple Inc.
Earlier this year, managers at the South Korean company began hearing the next iPhone wouldn’t have any eye-popping innovations. The device would look just like the previous two models too. It sounded like a potential opening for Samsung to leap ahead.
So the top brass at Samsung Electronics, including phone chief DJ Koh, decided to accelerate the launch of a new phone they were confident would dazzle consumers and capitalise on the opportunity, according to people familiar with the matter.
They pushed suppliers to meet tighter deadlines, despite loads of new features, another person with direct knowledge said. The Note 7 would have a high-resolution screen that wraps around the edges, iris-recognition security and a more powerful, faster-charging battery. Apple’s taunts that Samsung was a copycat would be silenced for good.
Then it all backfired.
Just days after Samsung introduced the Note 7 in August, reports surfaced online that the phone’s batteries were bursting into flame. By the end of the month, there were dozens of fires and Samsung was rushing to understand what went wrong.