Samsung just suffered a major setback as the company is recalling all Galaxy Note 7 smartphones because of a serious battery cell issue that can result in exploding batteries. The South Korean conglomerate says it's aware of 35 incidents, which is definitely a lot considering this phone has been on the market for barely two weeks!
Sales have ceased and it's unknown when the phablet will be available again as the company is still investigating the issue. Analysts from Credit Suisse estimate that in a worst-case scenario, this could chop $1.34 billion from Samsung's 2016 profit.
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 Note7, 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 Note7. For customers who already have Galaxy Note7 devices, we will voluntarily replace their current device with a new one over the coming weeks.
We are working with our carrier partners to announce the details of the U.S. product exchange program as soon as today.
We acknowledge the inconvenience this may cause in the market but this is to ensure that Samsung continues to deliver the highest quality products to our customers. We are working closely with our partners to ensure the replacement experience is as convenient and efficient as possible.