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Samsung issues recall over exploding Note7s

By Maria SantosKorea
1 min read
samsung galaxy note 7 to come with improved s pen functions price hike expected
samsung galaxy note 7 to come with improved s pen functions price hike expected
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Samsung plans to conduct a global recall of its Galaxy Note7 following reports that the device can overheat and even explode due to a faulty battery.

The company announced it has stopped sales of the device and will voluntarily replace it for existing customers over the coming weeks.

As of September 1 there had been 35 reported cases of battery malfunctions globally, Samsung said. The company is conducting a thorough inspection with suppliers to identify possible affected batteries in the market.

But sales of the device have not been suspended in every marke. In a statement, 3 Hong Kong said it has learned from Samsung Hong Kong that sales of the device will not be affected by the recall, and the device launched in the market as scheduled last week.

By contrast, the Philippines’ Globe will participate in the recall, and announced it will replace existing Note7 devices as soon as Samsung is able to provide replacement units, or customers can select another replacement device instead.

Bloomberg has estimated that it may cost Samsung as much as $1 billion to replace all 2.5 million Note7 phones shipped since the device’s launch two weeks earlier. The company could also face reputational damage a a precarious time for smartphone vendors.

Questions & Answers

Q.

Which regions are not suspending sales of the Galaxy Note7 despite the global recall?

A.

Sales of the device have not been suspended in every market. Samsung Hong Kong has informed 3 Hong Kong that sales will not be affected there, and the device launched as scheduled last week.

Q.

What is the estimated financial impact of this recall for Samsung?

A.

Bloomberg has estimated that replacing all 2.5 million Note7 phones shipped since launch could cost Samsung as much as $1 billion. The company also faces potential reputational damage.

Q.

How many battery malfunction cases have been reported globally so far?

A.

As of September 1, Samsung had received 35 reported cases of battery malfunctions globally. The company is conducting a thorough inspection with its suppliers to identify affected batteries.

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