Samsung to Pay Millions to Settle Lawsuits Over Mass LCD TV Failures

[PaulGo]

Samsung to Pay Millions to Settle Lawsuits Over Mass LCD TV Failures

Problems affected a multitude of users, some several times; Samsung will off up to $300 USD in reimbursement

It would be fair to say that Samsung's display business has some serious issues.

While Samsung Electronic Comp., Ltd. (KS:005930) outsold its rivals in 2011 in both the flat-panel segment and the 3D-TV sub-segment [source], it also hemorrhaged $900M USD. The company is currently in the midst of spinning off its LCD panel manufacturing TV business -- which ironically it just expanded via buying out a joint stake in its display partnership with Sony Corp. (TYO:6758). The deal is set to wrap up on April 1, creating a new wholly owned subsidiary of the Samsung conglomerate dubbed "Samsung Display Company". The spinoff is expected to unshackle Samsung Electronics from the losses, allowing it to aggressively pursue OLED technology development.

I. Persistent Failures Strike Numerous Samsung TV Buyers

But even aside from the balance sheet, Samsung has serious issues to contend with, despite its sales success. The company has just announced details of a class action settlement with consumers over its use of less-expensive failure-prone capacitors.

The failures were sweeping. DailyTech first covered this issue in an early 2011 piece, after both hearing numerous first hand accounts of failures at CES 2011 and reading yet more accounts of failures on Amazon.com, Inc.'s (AMZN) user reviews section. While anecdotal, these stories painted a disturbing picture.

Full article at:

http://www.dailytech.com/Samsung+to+...ticle24065.htm

[Blu-Benny]

my Samsung died b/c of this once a couple years ago…luckily I had best buy’s warranty and they came out and fixed it.

[D1-2005]

I have had one that sammy repaired because of the capacitors. I had a 46A550 and a 40A550, the 40 got repaired but the 46 is still kickin. I did buy the 46 when they first came out and the 40 towards the end of that line, maybe they cheaped out after the prices started to drop. At least I hope that was the case lol

[ZoetMB]

It boggles the mind why companies cheap out on capacitors. It's such an inexpensive component, yet good capacitors make all the difference in the world. It's not just TVs: it's probably the number one reason why products fail - leaky capacitors. I bet the difference between a good and poor quality capacitor is less than a penny each.

The bigger tragedy here is that Samsung basically dumped product on the market, forcing Sony, Panasonic and others to lose money on their operations and now the entire industry is in critical condition. Normally, that's called "predatory pricing" and it's illegal in most countries. While consumers benefited from low prices, what good is it if the products fail and the better manufacturers can't afford to stay in business?

[Anthony P]

Originally Posted by ZoetMB

It boggles the mind why companies cheap out on capacitors. It's such an inexpensive component, yet good capacitors make all the difference in the world. It's not just TVs: it's probably the number one reason why products fail - leaky capacitors. I bet the difference between a good and poor quality capacitor is less than a penny each.

The bigger tragedy here is that Samsung basically dumped product on the market, forcing Sony, Panasonic and others to lose money on their operations and now the entire industry is in critical condition. Normally, that's called "predatory pricing" and it's illegal in most countries. While consumers benefited from low prices, what good is it if the products fail and the better manufacturers can't afford to stay in business?

agree, but what do you want, people are stupid. A TV is a TV, a receiver a receiver and a film a filme (and a computer a computer, a car is a car.....), so who cares if it is crap or not when deciding what to buy as long as it is cheaper? You only get caught with your pants down when it is way too late and then it is the manufacturers/retailers fault.

[steve1971]

Samsungs tv's may look beautiful on the outside but its whats on the inside that counts. When your worried more about quantity then quality the customer suffers, not to mention terrible customer service. Samsung turned a blind eye to it and now are paying the price. Its about time and I am glad I never bought a Samsung tv.

[maleaco]

Wow this is crazyyyy!! I cant wait to keep up with this

[My_Two_Cents]

Originally Posted by Anthony P

agree, but what do you want, people are stupid. A TV is a TV, a receiver a receiver and a film a filme (and a computer a computer, a car is a car.....), so who cares if it is crap or not when deciding what to buy as long as it is cheaper? You only get caught with your pants down when it is way too late and then it is the manufacturers/retailers fault.

I care.

I never buy anything "major" without first researching the hell out of it so that I know exactly what I'm buying. But I understand and agree with what you are saying. Most consumers are simply mindless sheep, making most purchases strictly on price and not knowing or caring about anything else.

[DavePS3]

I'll say this about my (our) experience with Samsung sets...

We experience no more failures than we see on Panasonic however, it needs to br noted that we deal only with the top three models in any manufacturers line. The lower end stuff that you see in say, Costco or their ilk, is not brought in here at our store for a few reasons:

1) PQ is seriously reduced despite the more attractive price points to consumers.
2) Lower end sets are pumped out at some places at almost dead cost and because there's no profit there to keep the doors open, they are pretty much a waste of time to sell.
3) By carrying the low-end sets, we then put ourselves in the same category as the box movers, which we have no interest in doing.

That all said, even lower end sets shouldn't be failing just because they are cheap. If you wanted a cheap crappy-built product, you'd look for the Fisher Price-type panel. Samsung, like all manufacturers, don't produce all their components themselves. Loewe Opta for example, had to source out their North American Flyback transformers and power supplies and those became the TV's weakest links here, where in Europe etc., no such problems existed.

Often, promises are made by component makers (like Cap's) and while hands are shaken over a seemingly great deal, it can turn out that the deal was bad but you don't find that out until it's too late in the game and many people are affected by it, thereby giving the company a bad name.

It's that old saying... if it seems too good to be true, it probably is. Cap's, resistors diodes etc... are only as good as the elements that make it up and cheaper isnt always a better way to go. I feel badly for those affected and it shouldn't have happened but it does, did and will in the future unfortunately. The electronics world is rife with little problems and big, just like the auto industry etc.

[MrFattBill]

I had to fix one of mine. I am sure at some point I will have to fix the other one that I purchased at the same time, it's now at my sister in laws house.

Bill

[Anthony P]

Originally Posted by Ricshoe

I care.

I never buy anything "major" without first researching the hell out of it so that I know exactly what I'm buying. But I understand and agree with what you are saying. Most consumers are simply mindless sheep, making most purchases strictly on price and not knowing or caring about anything else.

yeah, but the issue with research is that most of it is useless. The guy buys the object and before he even used it goes on-line and posts how it is the best thing ever invented. And if we are talking forums instead of review sites, if something happens (i.e. he got a lemon) he comes back and it was the worst thing ever (and often a bit too late).

[somchair1]

Originally Posted by broaddouglas

Got my Samsung TV 2 years back and is working quite well...NO such issue has been raised!! and the customer service is also good!!

I have an 850 from 2008. I get a tiny red line that goes down the right side of the screen but vanishes once the tv is on for a couple of minutes.

[mugen302005]

Are most of the complaints bias? I mean Not everyone that has posted here reports any issue regarding malfuntioning samsung tvs. If it is true then I hope to hear more about it all over the net, but I guess this is untill this moment an overreaction.
I have had philips tvs, sony's and now samsung's and no issues so far in any of them, just the usual peeves about performance.

[My_Two_Cents]

Originally Posted by mugen302005

Are most of the complaints bias? I mean Not everyone that has posted here reports any issue regarding malfuntioning samsung tvs. If it is true then I hope to hear more about it all over the net, but I guess this is untill this moment an overreaction.
I have had philips tvs, sony's and now samsung's and no issues so far in any of them, just the usual peeves about performance.

If Samsung is paying millions to settle a suit (and spinning-off their LCD division), then it's certainly not an overreaction.

[P@t_Mtl]

Originally Posted by Ricshoe

If Samsung is paying millions to settle a suit (and spinning-off their LCD division), then it's certainly not an overreaction.

I think it's possible to have a "lemon" at any level. I also notice that some people are just plain "unlucky" with electronics A guy I know as things "blowing" up all the time, no matter the type or model. Also certain people overreact when something happen's in the sense that they act and talk like Samsung actually sabotage their TV to personaly get them

My Samsung will be four years old soon and it's still going creat (and I use it A LOT). I am thinking of giving it to my mom who does have a HD TV yet and replacing it with the new Sharp Quatro, maybe I won't be as lucky with the Sharp?

[twilightfan]

this is why I have Sony....love them. Price isn't everything.

[DavePS3]

Originally Posted by twilightfan

this is why I have Sony....love them. Price isn't everything.

According to reliable sources... the high end Sony's are made by Samsung... mid-line panels by Sharp and their lower end panels are BenQ so Sony hasn't made their own sets in years.

[Anthony P]

Originally Posted by Ricshoe

If Samsung is paying millions to settle a suit (and spinning-off their LCD division), then it's certainly not an overreaction.

agree, I don't see why the guy thinks there is overreaction. Samsung has admitted they screwed up and are willing to pay for it. It is not about someone having bad luck on a lemon or anything. Probably some pencil pusher in accounting overruled an engineer saying it is good enough and now the company has to pay now.

[Anthony P]

Originally Posted by DavePS3

According to reliable sources... the high end Sony's are made by Samsung... mid-line panels by Sharp and their lower end panels are BenQ so Sony hasn't made their own sets in years.

Sony (until last year) did have a joint venture with Samsung in a LCD panel plant. I am not sure if that is what you are talking about.

But in the end none of it matters. All the manufacturers outsource the different parts/assemblies of equipment. But the same way a plant can make a 32"TV and a 60" TV, the same way a manufacturer can have a slightly higher end model with (for example) more inputs and a slightly lower with less inputs, each model by each manufacturer has its own specs, its own parts and its own rules for rejection. So it does not matter where anything is made. When model X for manufacturer Y is build, they obviously need labels for X and Y but they also load each and every other part as well. Sometimes there can be very little difference between two models on one assembly line but other times there is almost nothing that is the same.

[ZoetMB]

Originally Posted by DavePS3

According to reliable sources... the high end Sony's are made by Samsung... mid-line panels by Sharp and their lower end panels are BenQ so Sony hasn't made their own sets in years.

WRONG. The panels might be made by Samsung (although Sony just pulled out of their joint venture), but the sets themselves are manufactured by Sony. There's a lot more to a set than the panel. If there wasn't, then there'd be no difference in picture between a Samsung and a Sony and there is a tremendous difference in picture.