Samsung Galaxy Note 7 News and Updates: Exploding Batteries May Force Worldwide Recall; Delayed Shipments and Effect to Samsung's Profit
Samsung's newest flagship smartphone, the Galaxy Note 7, has debuted this month to almost universal acclaim, with most calling it the best smartphone currently available around the world.
But that worldwide lovefest for the tech giant might come to an abrupt end, as Samsung Electronics Co. Ltd is reportedly considering a recall of all Galaxy Note 7 smartphones after several user complaints of exploding phones while charging.
According to a report from Reuters, there are no official dates set for the recall. Samsung has yet to issue an official statement on the matter, although a report from Korea's Yonhap Agency quoted an unnamed Samsung official confirming that the cause of the exploding devices were the batteries, and accounts for less than 0.1 percent of the entire volume sold.
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Delayed shipments to South Korea, US, other regions
Samsung had already ordered the delay of shipments of the said smartphones to the top three South Korean carriers Wednesday, attributing the delay to additional quality testing. The order followed several reports from South Korean users saying the $800 phones caught fire while charging, which could be linked to third-party USB Type-C chargers.
Apart from these isolated cases, the new flagship phone was widely well-received in the region since it launched Aug. 19. Still, investors wiped $4 billion off its market value, which it quickly recovered Friday.
Samsung's batteries are manufactured by multiple suppliers, reported Wall Street Journal, and is certainly not the first smartphone maker to have battery issues. Earlier this year, Apple recalled adapters in Europe after reports that they delivered electric shocks.
The official said users can resolve the problem by changing the battery, but are resolved to come up with more convincing measures for the safety and satisfaction of its customers. The company has also pushed back the European release in Britain and France, while shipments to the US seem to have been halted as well.
How this could affect Samsung
While analysts speculate that Samsung will be able to resolve the issue soon, an unprecedented recall of its newest flagship device would inevitably derail its projected growth. Credit Suisse projects a $1.3 trillion loss against the tech giant's estimated $30 trillion profit.
The recall certainly comes at a bad time, especially as a string of its toughest competitors are set or have launched its new flagship devices and smartphones. A statement issued by a Samsung spokesperson said it is currently conducting an investigation and remains fully committed to providing only the highest quality products for its users.
