Some customers have reported their new phones caught fire or exploded while they were charging. To Date, Samsung said it had confirmed 35 such cases globally caused by faulty batteries. Samsung has finally confirmed that they will be halting the sales of the Galaxy Note 7, and recalling all phones that have been bought so far.
In an official statement, Samsung stated:
"Samsung is committed to producing the highest quality products and we take every incident report from our valued customers very seriously. In response to recently reported cases of the new Galaxy Note 7, we conducted a thorough investigation and found a battery cell issue.
"To date (as of September 1) there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market. However, because our customers' safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note 7.
"For customers who already have Galaxy Note 7 devices, we will voluntarily replace their current device with a new one over the coming weeks.
Therefore, the solution for the problem caused to all the customers that bought a Note 7 is that Samsung will replace their old Note 7 free of charge. Samsung has committed to do this within two weeks to ensure customer use of device is minimally affected.
Samsung shares and Stocks
The latest issue has caused a large amount of setback for the technology group as the Shares of Samsung Electronics fell as much as 3.5 per cent on Thursday morning of 1st of September. Investors worry that the sales momentum for the second half of the year will be awfully slow due to the quality fault in the handset.
Galaxy Note 7 stock was scheduled to ship to European customers on September 2nd, however, consumers will be now facing delays until Samsung can improve its supply situation as well as the battery fault situation. Samsung has committed to replacing handsets within 2 weeks but with new and improved handsets coming out for a launch it still might take a few months.
There is a really expensive price tag on the latest Samsung’s comprehensive recall of all Note 7 devices that have been shipped to date. Bloomberg reports have estimated a total cost of approximately $1 billion for replacing all 2.5 million devices that have been shipped since launch last month.