Consumers have reported online that the flagship catching fire during charging. Samsung has stopped shipments while it is extensively testing the smartphone in its lab.
As per a source who is familiar with the matter at hand, Samsung Electronics Co Ltd could potentially recall its brand new flagship smartphone, the Galaxy Note 7, midst reports of the phone catching fire due to battery problems.
The source did not comment on the scope nor the schedule of the recall. However, South Korea’s Yonhap News Agency, citing an anonymous source from Samsung has essentially confirmed the report of a possible “global” recall of the phone.
Consumers have claimed online that their smartphones caught fire while charging the instrument.
Analysts expect Samsung to take the bull by its horn and resolve the matter quickly before it does more damage and derails the recovery of its mobile division. Earlier a series of successful product launches had reversed Samsung’s decline in market share.
Samsung had pinned its hopes on the Note 7 to maintain the momentum of strong sales. This is critical to tis operations since Apple is set to launch its latest offering sometime next week.
“They need to nip it in the bud right now. The last thing they want is for memes to be spreading on the internet associating the Samsung name with an exploding battery or injury,” said Bryan Ma, an analyst with IDC.
On Wednesday, Samsung said it had stopped shipping Galaxy Note 7 to the top 3 South Korean carriers in view of it conducting extensive tests on the smartphone.
It did not provide any details on any problems that it may have found on the device which it launched on August 19. Its flagship was well-received by critics.
On Thursday, investors stripped nearly $7 billion from Samsung’s market value in response to the shipment delays on Thursday. Today’s sentiment appeared to be more positive with its shares gaining lost ground by 0.3%.
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