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Long way for Samsung to rebuild customer loyalty in Australia

Reporter: Greg Navarro 丨 CCTV.com

09-23-2016 02:43 BJT

Consumer groups in Australia think Samsung has a long way to go to rebuild customer loyalty in the wake of its massive smartphone recall. They say confusing information and long delays in replacing faulty Galaxy Note 7 phones may push many loyal Samsung customers to consider other companies.

Michael Thomas was one of the customers inside a Sydney Samsung store lucky enough to get a replacement for his recalled phone.

"There was a long wait there, they were very busy, there were quite a few angry people," he said.

Katherine Cruz was not.

When the much hyped Galaxy Note 7 first came out - she didn’t just buy one.

And the Sydney woman says she’s had enough.

"Especially when you pay about 1,300 dollars for a new phone that you can’t use plus the accessories," she said.

Cruz is one of more than 50,000 consumers across Australia impacted by the recall.

"This is an epic failure from Samsung putting 51,060 dodgy Galaxy Note 7’s on the market," said Tom Godfrey, Spokesman, Choice.

There have been two reported cases of Samsung Galaxy Note 7 batteries exploding - one damaged a Perth hotel room.

And several airlines here have banned people from charging the recalled phones on flights.

Choice spokesman Tom Godfrey says the consumer group received a legal letter from Samsung upset with the way Choice was advising customers.

"Samsung was trying to impress upon us that consumers had other rights including a replacement. They are a potential fire risk and under Australian consumer law the consumer decides whether or not they get a repair, replacement, or a refund," he said.

Samsung’s problems here have prompted some consumers to give rival Apple a second look.

"I guess the charger is one thing, and certainly you’ve got the potential for burning your house down and whatever, but the mere fact in a country like Australia you can’t walk on an aircraft with your Samsung phone is debilitating for a lot of business people," said Rohan Miller, Senior Lecturer, University of Sydney Business School.

University of Sydney Business School senior lecturer Rohan Miller is one of Samsung’s customers who is considering other brands - so is Katherine Cruz.

"If they don’t fix this up in a week I’ll get a full refund and get an iPhone as well, instead," Cruz said.

Because she says simply trying to get her recalled phones replaced is no longer worth the inconvenience.

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