The Galaxy Note 7 is DEAD, and it has caused a big financial black hole for Samsung
UPDATE: Galaxy Note 7 Back From The Dead – Well, Kind of...
Samsung is apparently considering selling refurbished Galaxy Note 7 handsets in emerging markets like Vietnam and India.
This has been rumoured before but now it seems the company has shifted gears on the initiative in order to recoup the losses it made following the handsets departure from market.
Hankyung reports that Samsung is indeed planning on re-launching and reselling the Galaxy Note 7, albeit one’s with a smaller, non-explosive battery, in India and Vietnam.
“The report indicates that Samsung will opt to use a 3000mAh battery in these devices,” notes Android & Me, “rather than the 3500mAh battery that was used in the original phones.”
Samsung apparently has around 2 million Galaxy Note 7 units it needs to get rid off. This refurb program would theoretically allow the company to get rid of most of these units by targeting emerging markets with refurbished handsets with lower prices.
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Oh dear kids, Samsung's Q3 financial results are in and it is not pretty at all. Following the much-reported "explosiongate" fiasco with the Galaxy Note 7 being recalled twice, and then discontinued, Samsung's operating profit for its mobile division has taken a complete nosedive, to the tune of a 95% crash. Operating profit for the quarter is $87.8 million, down 95% from the same quarter in 2015 and the firm's lowest operating profit quarter in the last eight years.
Samsung's total operating profit including all other sectors of its businesses (TVs, appliances, etc.) is $4.5 billion for the quarter, down $1.9 billion from Q3 2015 and the lowest profit quarter in the last two years. In a statement made with the reveal of the Q3 results, Samsung made no bones about the fact that the Galaxy Note 7 debacle is the cause of this signfiicant financial loss.
"The Mobile business saw its earnings decrease significantly QOQ due to the effects of the discontinuation of the Galaxy Note7. However, smartphone shipments remained solid due to continued stable sales of its existing flagship devices, including the Galaxy S7 and S7 edge, and steady growth in the mid-tier Galaxy A and J series."
The firm said it is still hopeful that peak sales of devices such as the Galaxy S7 series in the often profitable Q4 will help it to hit comparable year-on-year figures to 2015. In other words it is hoping at best to break even. However, Samsung is optimisitc about next year.
"As for 2017, the company anticipates a turnaround with the launch of new flagship smartphones," it said.
Samsung officially discontinued the Galaxy Note 7 after replacement "safe" units following the first recall and replacement scheme also began exploding.
The first major incident after the first recall happened during boarding on a Southwest Flight 994 to Baltimore at Louisville International Airport on Wednesday. This wasn’t an old model either; no this was a brand new, reissue model deemed safe by Samsung. The plane was evacuated after the cabin filled with smoke, thank god it happened before flight.
The US Consumer Product Safety Commission chairman Elliot F. Kaye has released an official statement about the incident.
“CPSC is moving expeditiously to investigate this incident. Thankfully, reports indicate that all of the passengers were able to make it off the plane without harm. Agency staff has already reached out to the FAA and Samsung to gather the facts about the incident. Agency staff will also reach out to the consumer who experienced a serious incident with his phone. I want to reiterate my call for consumers who have the recalled Galaxy Note 7 to keep their smartphones powered down and to immediately take advantage of the remedies being offered by Samsung. Consumers should know that one of the remedies is a refund.”
UPDATE: "South Korean tech giant Samsung has urged owners of the Galaxy Note 7 to turn off its high-end smartphone while it investigates new reports of the device catching fire," reports BBC. "The firm also said it would stop sales of the phone, and halt production. Samsung recalled 2.5 million phones in September after complaints of exploding batteries, and later insisted that all replaced devices were safe."
Things have gone from bad, to worse to terrible for Samsung’s Galaxy Note 7. The handset has been embroiled in one of the biggest PR disasters to hit the mobile space in living memory. Exploding handsets, recalls, and then, bizarrely, more exploding handsets.
T-Mobile is reportedly halting ALL sales of the Galaxy Note 7 and, after a Galaxy Note 7 caught fire on a plane earlier in October, airlines are starting to enforce protocol for fliers with Galaxy Note 7. Since the recall there have been five confirmed cases of Galaxy Note 7 handsets exploding.
Sources have now also claimed that Samsung has halted production of the Note 7. According to the report, “the unprecedented halt in production is another blow to Samsung, which last month announced the global recall of at least 2.5m Galaxy Note 7 smartphones due to faulty batteries that caused some of the phones to emit smoke or catch fire.”
Samsung has issued statements regarding the ongoing problems.
On the subject of the Flight 994 incident, Samsung said, "Until we are able to retrieve the device, we cannot confirm that this incident involves the new Note7. We are working with the authorities and Southwest now to recover the device and confirm the cause. Once we have examined the device we will have more information to share."
"Samsung understands the concern our carriers and consumers must be feeling after recent reports have raised questions about our newly released replacement Note7 devices. We continue to move quickly to investigate the reported case to determine the cause and will share findings as soon as possible. We remain in close contact with the CPSC throughout this process. If we conclude a safety issue exists, we will work with the CPSC to take immediate steps to address the situation. We want to reassure our customers that we take every report seriously and we appreciate their patience as we work diligently through this process."
"The halt is in cooperation with consumer safety regulators from South Korea, the United States and China," said an official at a supplier for Samsung. "This measure includes a Samsung plant in Vietnam that is responsible for global shipments (of the Galaxy Note 7)."
A total of four incidents have been recorded of the Galaxy Note 7 catching fire since the recall in the US. Following this, all major US carriers, as well as Australian carrier Telstra, have suspended sales.
T-Mobile chief John Legere said on Twitter, "Out of an abundance of caution for our customers, @TMobile is halting sales & exchanges of the new Note7."
The scale of Samsung's financial burden for the Galaxy Note 7 crisis appears to be growing. The firm released details on Wednesday 12 October estimating a $2.3 billion drop in profit for Q3, but has now issued earnings guidance for Q4 2016 and Q1 2017, and things are not exactly peachy. Q4 is expected to see a continued loss of just around $2-2.5 billion, and around $1 billion. Overall we're looking at around $5 billion in losses for Samsung off the back of both recalls, or a loss of $2000 per Galaxy Note 7 handset unit. To put it another way, Samsung has wiped out two thirds of its operating profit for the quarter. Ouch.
As of October 7, comments have emerged from former CSPC experts following its launch of the investigation into the above incident. According to a report from Bloomberg, it has not been confirmed whether the Galaxy Note 7 involved was indeed a replacement "safe" model. However, former executive director of CSPC, Pamela Gilbert, speaking to the publication, said, "If it’s the fixed phone and it started to smoke in his pocket, I’m going to guess there’ll be another recall," adding that a decision could be reached as early as next week.
"This is not something you want to leave hanging out there," said Gilbert. Similarly, former CSPC chairwoman Nancy Nord also said that a second recall would be unusual, but not out of the question considering the circumstances if "it appears this is something beyond an aberration."
At the same time, US networks are reacting to the incident. Sprint has said that replacement Galaxy Note 7 owners on its network can trade in their phone for any other device. In a statment, a company rep said, "Sprint is working collaboratively with Samsung to better understand the most recent concerns regarding replacement Samsung Galaxy Note 7 smartphones."
"If a Sprint customer with a replacement Note 7 has any concerns regarding their device, we will exchange it for any other device at any Sprint retail store during the investigation window."
T-Mobile has also stated that replacement Galaxy Note 7 owners can exchange their handset under its "buyer's remorse" policy for a full refund within 14 days of purchase.
Samsung Chief Says SOZ About The Exploding Note 7
Despite the handset being discontinued, the fallout of the Samsung Galaxy Note 7 exploding battery saga continues. Following the second global recall after axing the product, Samsung's mobile chief Koh Dong-jin held a press conference with local Korean media apologising to consumers and promising to unearth the cause of the Galaxy Note 7's issues so that the firm doesn't repeat the same mistake in future devices.
The Korea Herald reports that Koh also said he would do everything possible to "restore trust of consumers so that they can use Samsung products without any safety concerns."
However, there are rumours afoot that the Note 7 debacle may end up costing Koh his job.
Interestingly though, despite the issuing of a second recall, it would appear many Galaxy Note 7 owners are in open rebellion; user statistics for activated Galaxy Note 7 phones have continued to rise. After the Note 7 was discontinued, Samsung issued instructions that users should power off their devices and has even provided shipping means for returning the phones to avoid buyer's incurring costs. Tracking the Note 7 user data shows the number of people running their "risky" handsets has increased by 10% since the model was discontinued. Samsung has sold 2.5 million Galaxy Note 7 units but has so far confirmed 1.9 million units have been returned.
Samsung To Lose 5-7 Million Galaxy Note 7 Customers To Apple Following "ExplosionGate"
Somewhere between 5-7million Samsung users could be switching to Apple's iPhone 7 following the Galaxy Note 7 "explosiongate" fiasco, according to a report from KGI Securities analyst Ming-chi Kuo.
Kuo is well-known in the mobile industry for having his finger on the pulse when it comes to Apple's iPhone; he's well-connected with sources inside the Apple supply and production network in Asia, and publishes a lot of detailed reports which, more often than not, turn out to be accurate. Such reports are usually with regard to what specs and features forthcoming Apple devices will have - they're mostly spot on - while other reports focus on Apple sales figures for new products.
So, being an Apple afficionado, could Kuo be subject to a bit of bias here? Well, possibly, but our feeling is probably not. Notably, Kuo's most recent predictions for the iPhone 7 ahead of its launch were not particularly kind to Apple - in a nutshell, Kuo recognised that Apple would be reserving many of its major changes and innovations for the 2017 model and conclued that the iPhone 7 would not be interesting enough to attract a lot of attention from consumers.
Following Apple's poor sales performance figures for 2016's Q1 and Q2, Kuo also published reports saying he expected this performance dip to continue into 2017 after the release of the iPhone 7. So, Kuo is quite happy to point out when Apple isn't doing well or is at some kind of disadvantage.
What he's saying in his new report is that the discontinuation and recall of the Galaxy Note 7 appears to have left a bit of a gap in the market. Samsung fans have also been shaken somewhat and are left wondering if the Galaxy brand is all it's cracked up to be.
Kuo believes that "average" consumers who would have picked up the Galaxy Note 7 may now be turning to the iPhone 7 and iPhone 7 Plus in large numbers, stating that they "have a tendency to like iOS and camera features, making the new iPhone an attractive sale."
Before the Note 7 was discontinued, Samsung received around 12 million orders for the phablet; Kuo estimates as many as 50% of these unfulfilled orders will result in an iPhone sale instead, likely the iPhone 7 Plus model with a dual-camera.
Samsung Hit With Galaxy Note 7 Lawsuits In US & Korea
If you thought things were bad for Samsung having to deal with the discontinuation of one of its lead products, the Galaxy Note 7; a total recall of the device, plummeting consumer and investor confidence, and an estimated $5bn loss across the next three quarters, not to mention official bans and probes by authorities in both the US and South Korea...well it just got worse.
Samsung is facing legal action in the US. Firstly, a US law firm McCuneWright has filed a lawsuit against Samsung regarding the Galaxy Note 7 recall.
"The plaintiffs in the case claim that due to the recall, they were left without phones for weeks," reports CNET. "The suit seeks reimbursement of cell phone service fees. The plaintiffs are also looking for class-action status."
"While Samsung has offered consumers replacement phones or a refund, it has failed to reimburse consumers for monthly costs associated with owning an unusable Note7," said McCuneWright, in a post on its website.
Meanwhile, a separate class action lawsuit has been brought against Samsung, also in the US. The filing was made in a federal court in Newark, New Jersey, by three Galaxy Note 7 customers - allegedly, however, this filing "seeks to represent a nationwide class of Note 7 customers in Nevada, Pennsylvania and California," according to a Reuters report.
The case was filed on October 16 and alleges that the customers stopped using their Galaxy Note 7 handsets following the recall, but were "asked to wait days or weeks for a replacement phone," while continuing to "incur monthly device and plan charges for phones they could not use."
Samsung's first Note 7 lawsuit emerged in September during the earlier phases of exploding phone reports. The case was filed a day after the first recall by Jonathan Strobel, 28, of Boca Raton, Florida.
Strobel suffered "severe burns on his right leg" when the phone caught fire in his pocket.
"He was also severely burned on his left thumb, after he reached over to try to remove the phone from his pants," said a Reuters report.
"He has a deep second-degree burn, roughly the size of the phone, on his right thigh," said Strobel's lawyer Keith Pierro. "Unfortunately for my client the recall came too late."
Strobel's lawsuit seeks unspecified damages for "medical bills, lost wages, pain and suffering."
The very latest reports also show that Samsung is getting a legal kicking in its home nation of South Korea. Local media reports that a total of 38 Galaxy Note 7 users are filing a class action lawsuit against Samsung "for alleged inconvenience."
It states that Note 7 owners were "forced to visit stores several times for battery checks or to get replacements," and "experienced anxiety over safety when using the Note 7." The suit is seeking damages of $266 per person ($10,108 total).
South Korea Launches Investigation Into Galaxy Note 7
As well as Samsung's own internal investigations and an official investigation by the US CPSC into the Galaxy Note 7 explosions and fires, Korea's equivalent body, the Korea Testing Laboratory (KTL) is also launching its own probe into the incident.
Samsung has provided KTL with five faulty Galaxy Note 7 units, and as well as looking into the battery directly, KTL will conduct a thorough investigation of the phones, including X-Ray and computerised scanning methods.
"We have handed over the phones (that caught fire) to KTL and will cooperate with their investigation, but we can't just sit and wait for its result," said a Samsung spokesperson.
"We have been mobilizing all possible resources to find the exact cause of the problems as soon as possible."
Samsung also said it may examine the units provided to the US CPSC.
Samsung Galaxy Note 7 Recall: The Damage ($£€¥)
Make no mistake, the exploding Galaxy Note 7 debacle has been a disaster for Samasung, both in PR terms and also in the material - the impact on Samsung's bottom line.
"Samsung has sold at least 1 trillion won (£683m) of shares in four technology companies to raise cash to pay for a recall expected to cost $1 billion. That figure may be set to rise as new reports have surfaced in China of Samsung’s Galaxy 7 Note exploding. The fault had not previously been detected in the world’s biggest smartphone market," reports The Independent.
All it can do now is look forward to next year's Samsung Galaxy S8 flagship and Galaxy X folding and flexible OLED phones and implement damage control for its Note 7 device.
And this is a real shame as well, according to details which emerged on September 19, the Galaxy Note 7 was apparently selling very well prior to the PR fiasco that is "explosiongate".
BayStreet Research claims that before the recall kicked off Samsung's year-on-year sales versus the Galaxy Note 5 were up by as much as 25%. With the disaster as it stands currently, the firm now believes the Galaxy Note 7, once sales resume, will probably account for around 60% of the revenue accrued by the Galaxy Note 5 sales last year. Previously the analysts believed the Galaxy Note 7 was poised to at least match Samsung's Galaxy S7 and Galaxy S7 edge performance, but it is now trailing behind in such estimates, understandably.
Cliff Maldonado, an analyst at BayStreet Reseach, said, "This is very unfortunate for Samsung as the Note 7 was in a position to perform as well as the GS7/GS7E had in the first half of the year. We have now lowered our Note 7 forecast to ~60% of the Samsung Galaxy Note 5 and are closely tracking how long consumer’s memories are regarding this unfortunate incident. Best case, this is similar to an automobile recall and quickly forgotten with the new / replacement item viewed as safer than before. Worse case, this is remembered like the quality of Siri or Apple Maps and very difficult for consumers to forget."
It's thought that Samsung was planning to capitalise on reports, like those from analyst Ming-chi Kuo, that 2016's iPhone 7 would be an incremental update. The Korean OEM allegedly believed it could muscle in on unimpressed iPhone fans with tons of new features, such as the iris scanner. At present it is estimated the exploding battery disaster may insteady cost Samsung around $1.5 billion.
Samsung Galaxy Note 7 Replacements ALSO Problematic!
Samsung’s replacement Galaxy Note 7 units are now shipping out to consumers and available in stores across the UK and US. However, multiple sources are now reporting new issues with the Galaxy Note 7; apparently replacement Note 7’s are now overheating and quickly lose juice, even when fully charged or while connected to a wall charger.
How extensive this issue is remains to be seen, but it is definitely not the type of news Samsung will want to be hearing, not after it lost billions in market value after the first Note 7 debecale.
Samsung told the WSJ that the issue is “completely unrelated to batteries,” and said that the incidents were “isolated cases” related to mass production issues, whatever that means. Either way, another day another PR disaster for Samsung.
According to reports on September 29, issues with overheating and draining batteries have been reported both in South Korea and the US, prompting Samsung to launch another official investigation. It appears many complaints focus on the phone getting very hot during calls. The firm has issued a statement on the subject, saying, "There have been a few reports about the battery charging levels and we would like to reassure everyone that the issue does not pose a safety concern."
"In normal conditions, all smartphones may experience temperature fluctuations," it added.
However, far from being a cop-out, Samsung is, according to the WSJ, working to resolve individual cases through customer services and its warranty program.
Samsung Galaxy Note 7 European Sales To Resume October 28
Samsung has released official statements regarding when sales will resume for its Galaxy Note 7 phablet in multiple world regions. The US sales will be back in action by the end of October. Earlier in the month Samsung stated that European sales wouldn't resume until late November, however, according to new reports as of September 28, Samsung will in fact resume European sales also in late October, on October 28, to be precise. There is a caveat though, with Samsung stating this date is "subject to a full completion of the exchange program", so in other words if a few people don't exchange their faulty Note 7 by that date they're going to be screwing everyone else over!
"We fully expect (new Note 7s) to be available everywhere by the end of November ... well before the end of the fourth quarter,” said David Lowes, Samsung Europe's chief marketing officer.
Of course Samsung is lining up sales to resume in its home region of South Korea at the earliest opportunity - by September 28 is the current line.
Samsung has also said that in Europe 57% of Note 7 customers have already exchanged their handsets in the first week of the program, suggesting the adoption rate is pretty good. Of this figure, an impressive 90% chose to get another Note 7 as a replacement, suggesting people are pretty happy with the Note 7 aside from exploding battery issues! Only 3% decided to opt for an alternative Samsung phone, while 7% asked for a cash refund.
Samsung Galaxy Note 7 UK Exchange Program Is Active
Samsung has launched its Galaxy Note 7 exchange program in the UK, following similar programs in the USA and Canada. In the wake of Samsung's Galaxy Note 7 exploding battery fiasco and the subsequent recall, the program allows those who've purchased potentially faulty units covered by the recall to acquire a replacement unit that is certain to be safe.
In the UK, replacement units will feature a green battery icon - faulty units have a white battery icon.
Samsung UK Mobile Vice President Conor Pierce, said, "Our absolute priority is the safety of our customers – that's why we are asking all Galaxy Note 7 customers to act now and exchange today. We would like to apologize to our Note 7 customers for not meeting the standard of product excellence that they have come to expect from Samsung and we sincerely thank them for their understanding and patience."
"We are confident that by exchanging their existing device for a new Note 7, customers can expect to enjoy a smartphone experience of the very highest quality."
If you're a UK resident who has already bought a Galaxy Note 7 and suspect it may be a faulty unit, you can check online with the phone's IMEI number (the number for your phone is found on the packaging, on the phone's back, and under Settings>About Phone>IMEI Status in the phone's menu screens). If you do have a faulty unit, you can take part in the exchange program by taking your handset to the retailer or network store you bought it from, or you can contact Samsung's dedicated support team on 0330 7261000.
"Samsung will have enough Galaxy Note 7 phones in stores Wednesday to replace half of the devices recalled for a battery problem. Stores will have replacements for the rest of the affected phones by the end of the month," said CNET. "The South Korean company on Tuesday said 500,000 replacement devices have arrived in the US and have been shipped to carrier and retail stores. About 1 million Note 7 units had been recalled in the country."
"New devices will be in stores no later than tomorrow and we will continue to take the necessary actions to ensure users are powering down and immediately exchanging recalled devices," Tim Baxter, president of Samsung Electronics America, said in a statement.
Samsung has confirmed that over 500,000 new Galaxy Note7 replacement devices have arrived in the U.S. and have been shipped to carrier and retail stores. New Galaxy Note7 devices will be available for exchange at retail locations nationwide right now.
“Working hand in hand with the CPSC, we are delivering as promised and moving quickly to educate consumers about the recall and make new Note7s available,” says Tim Baxter, president of Samsung Electronics America. “New devices will be in stores no later than tomorrow and we will continue to take the necessary actions to ensure users are powering down and immediately exchanging recalled devices.”
In conjunction with the CPSC, carriers and retailers, Samsung continues to maximize its reach to Note7 owners through multiple touchpoints, including direct communications, customer service, social media, marketing and in-store communications.
If you’re looking for a mega bargain and don’t mind running older hardware you can now pick up the Samsung Note 3 for under £300 via Amazon
Samsung Galaxy Note "Checker" Now Active - Sales To Resume September 28...In South Korea
Despite the threat of explosions, plenty of Samsung Galaxy Note 7 users have not returned their handsets even with the promise of a full replacement unit. In order to help clarify the situation, Samsung has now set up an IMEI Checker service; a webpage which allows users to enter their Galaxy Note 7's IMEI number and get an answer on whether or not it is an affected unit. If it does return a result which says your Note 7 could explode, instructions will pop up on how you can return your phone to Samsung and get a replacement. Replacements are expected to ship before 21 September as a priority. The IMEI number can be found on the handset's retail box packaging, on the back of the phone itself, or in the phone's Settings menu under "About Phone>Status>IMEI Information".
To access the IMEI checker, click here.
For anyone who hasn't bought a Galaxy Note 7 yet you may, understandably, be frustrated by being unable to pick one up thanks to the sales halt. There's news on this front too, however, as Samsung has now confirmed sales will resume from September 28. However, that date only counts for South Korea, on the subject of other regions Samsung has said that sales will only resume "when conditions allow", according to a CNN report. That would imply that Samsung needs to feel that it has enough faulty units returned in a given region, and enough produced new units to have replaced them as well as ship brand new stock for new sales, quite an undertaking no doubt.
Samsung Galaxy Note 7 Explosions Due To Pressure On "Isolation Plates"
Samsung has now submitted an official document to the Korea Agency For Technology And Standards, outlining the reasons it believes some Galaxy Note 7 units have exploded, Bloomberg reports. The document explains that the explosions occur due to a thermal runaway chain reaction, creating excessive heat inside the battery which builds up and explodes outwards from the small space. A manufacturing fault has been singled out as the culprit, where badly packaged battery cells put too much pressure on the isolation plates within the cell. The pressure in these locations means that in some circumstances the negative and positive poles of the battery cell come into contact, short circuiting and then creating the thermal runaway, and eventually an explosion. Samsung submitted the document explaining the issue to the official government agency on September 2.
In a memo to the agency, Samsung said, "Even before we have the final result of the investigation, we plan to establish and carry out the best ways to take care of our customers."
"We are currently investigating the battery issue in cooperation with battery manufacturers."
Samsung Galaxy Note 7 Unreturned Recalls Could Be Remotely Deactivated
According to reports circulating on September 12, unreturned Samsung Galaxy Note 7 units - that is, those covered by the global recall in relation to faulty and potentially explosive battery cells - could be deactivated remotely by Samsung. The word comes via a poster on Reddit, located in France, who claims to have spoken directly to a Samsung representative. Said rep, allegedly said that any unreturned Samsung Galaxy Note 7 units covered by the recall will be remotely bricked after September 30.
Reddit user LimboJr went on to add that the rep also revealed that replacement units will apparently arrive in France from September 19. The replacement packages will apparently include a Gear VR unit and "a prepaid parcel to send the defective device back without charges". Sounds like pretty good customer service to us.
The news follows reports that many Samsung users are apparently not participating in the replacement program, something which is concerning to the South Korean tech giant, enough that it has issued a statement:
"Our number one priority is the safety of our customers. We are asking users to power down their Galaxy Note7s and exchange them as soon as possible."
"We are expediting replacement devices so that they can be provided through the exchange program as conveniently as possible and in compliance with related regulations. We sincerely thank our customers for their understanding and patience."
Samsung Galaxy Note 7 Recall Issued Over Battery Fire Issue: Sales Put On Hold
Oh dear. Things aren't looking too great for the Galaxy Note 7 right now. Following its expected enthusiastic launch and reception, little problems are starting to crawl out of the woodwork. First we heard how the Galaxy Note 7's S-Pen stylus could become jammed in its containment slot, and then reports started bleeding out that the handset was catching fire.
Initially we regarded this somewhat cautiously, as the handsets catching fire when consumers use dodgy third-party chargers are not at all unusual. However, it seems this is the real deal, this is not down to user error and Samsung has now issued some statements on the problem, as well as issuing a recall and temporarily halting sales. This is sure to put a damper on Samsung's bottom line and there are already reports of investor concerns and share prices dropping in reaction - a Reuters report claims the firm's market share value dropped by as much as $7bn.
Samsung's initial response from a spokesperson said, "In response to questions on Galaxy Note7, we are conducting a thorough inspection with our partners. We will share the findings as soon as possible. Samsung is fully committed to providing the highest quality products to our consumers."
Following this, the firm has now revealed more details.
"As of Sept. 1, a total of 35 claims were registered with Samsung's service centers at home and abroad. Only 24 units on a scale of 1 million were affected by the battery problem. By putting our top priority on customer safety, we've decided to halt sales [of Galaxy Note 7] and offer new replacement handsets to all customers."
So yes, you can get a replacement handset. According to reports, Samsung designed the Galaxy Note 7 battery cell, but the production was delegated to third parties, it's claimed one of these third party manufacturers has produced the batteries present in faulty units.
Here's what the FAA had to say on the matter. Spoiler: it isn't good -- a ban could be enacted.
“The FAA and the Pipeline and Hazardous Materials Safety Administration are working on guidance related to this issue,” an FAA spokesperson told the site. “If the device is recalled by the manufacturer, airline crew and passengers will not be able to bring recalled batteries or electronics that contain recalled batteries in the cabin of an aircraft, or in carry-on and checked baggage.”
Samsung Galaxy Note 7 Recall "Heartbreaking" Says Exec
As of September 5 details have emerged that Samsung has already shipped 2.5 million Galaxy Note 7 handsets which will need to be recalled as part of the exploding battery debacle. The incident is sure to be financially damaging for Samsung, a downward turn following on from the firm's positive Q1 and Q2 sales.
via GIPHY
Following the issues with the Galaxy Note 7 Samsung market share value has also taken a hit after it climbed from Galaxy S7 performance. In all, it's not too surprising if the climate around Samsung is a slightly depressive one, when quizzed on the recall's financial impact on the company, Samsung's mobile chief Dong-jin Koh said it would be a "heartbreaking amount", according to Bloomberg.
Naturally, precise figures have not been given, but analysts predict at least $1bn would be a realistic estimate. But while that's a lot of cash to you and I, to Samsung that only represents around 5% of the firm's net income for 2016, sure, this is not a figure you want to be trotting out to shareholders as any negative isn't what they want to hear, but still, it's not the end of the world for Samsung in the grand scheme.
Samsung Galaxy Note 7 Ditching Samsung SDI Battery Cells
According to September 6 reports, Samsung has identified that the faulty cells which have caused Galaxy Note 7 explosions came from its own subsidiary; Samsung SDI. Apparently Samsung SDI produced as many as 70% of all the cells in produced Galaxy Note 7 units so far. Word from the Korea Herald and Wall Street Journal suggests that, on top of the recall, Samsung has decided it will no longer use Samsung SDI batteries for the Galaxy Note 7. Unnamed spokespersons are quoted as saying; "As a follow-up of the battery issue, we decided to temporally stop using Samsung SDI’s battery for Galaxy Note 7."
The remaining 30% of batteries were produced by Hong Kong-based Amperex Technology, itself part of the Japanese TDK Corporation. Amperex has stated that the battery cells it produced were only used in Galaxy Note 7 units distributed in China, which is the only region where the recall has not been implemented.
Samsung Galaxy Note 7 Pre-Orders Begin With UK Retailers
While pre-orders from Samsung's official outlets and the firm's own webstore have not yet begun, third-party retailers have now started taking pre-orders on the phablet. First up is Carphone Warehouse, which is selling pre-orders via its online webstore. Pre-orders made via Carphone Warehouse before August 30 will also net you a free 2016 Samsung Gear VR headset; the firm is also guaranteeing a September 2 delivery date. At present, CW isn't offering a SIM-free price for buying the phone straight up, but it is available on contract tariffs from £57 per month. For a full list of tariffs click here.
If you’re invested in Samsung and a future-oriented type of person then you NEED to check out Samsung’s SmartThings, which is essentially the company’s play for the IOT space. Samsung has recently cut the price of its entry-level Samsung SmartThings Hub, so getting up and running with your own personal IOT network has never been easier.
Samsung Confrims Android 7.0 Nougat Update Schedule - Update Due In 2-3 Months!
Samsung has now confirmed its plans to update the Galaxy Note 7 phablet, which launched with Android 6.0.1 Marshmallow onboard, up to the latest Android 7.0 Nougat build within "two to three months," according to a statement made by the firm's mobile business chief, Dong-jin Koh. In other words, Android Nougat will land on the Galaxy Note 7 by October or November at the latest. The Korea Times reports that Koh also said "It is very important for us to offer up-to-date information with the new OS, but what's more crucial is to build a stable and seamless platform for users. That's why we are planning to do enough beta testing before any OS updates."
Samsung Confirms Galaxy Note 7 6GB RAM & 128GB Storage As China Exclusive!
Well this is annoying! Samsung has now confirmed that the previously leaked and rumoured Galaxy Note 7 variant with 128GB of onboard storage and 6GB RAM will be released, but only in China! Samsung's mobile chief Dong-jin Koh, spoke to reporters at the firm's Galaxy Note 7 follow-up launch event in Seoul, South Korea. The Korea Herald in an August 11 report, says that according to Koh Samsung is "reviewing" the rollout of this higher-capacity, higher-RAM variant in China because rival smartphone manufacturers in China are "aggressively doing marketing with high-capacity memory," in the local market. So, what it sounds like is a 6GB RAM/128GB model was always planned, then dropped, then re-considered for China because apparently the Chinese market can't get enough of high-capacity storage? WTF? Not sure if you guys have noticed but there's plenty of 128GB Apple iPhones getting sold in North America and Europe! Following the disastrous move of only launching the Galaxy Note 5 in North America and Asia, we would have thought Samsung had learned this kind of exclusivity is a bad idea. Perhaps we will see a launch later for other global regions, but we remember saying something similar with the Note 5 and that never materialised, so on this front we wouldn't hold our breath.
Below we'll include our published coverage of previous rumours on the subject for the record:
Some pundits were a little shocked during the Galaxy Note 7 announcement when it emerged that Samsung was only revealing one storage variant for the phablet with 64GB of storage and 4GB of RAM. Recently there's been a push for higher storage models on flagship phones, with Apple raising its onboard storage up to 128GB, and with a phablet device with a focus on productivity, many expected the Note 7 would follow suit. There were also heavy rumours ahead of the launch for 6GB of RAM inside the Note 7.
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