Samsung's burns could hurt
What started as a small issue could now hurt tech giant Samsung’s bottom line.
Samsung recently launched an international recall of its Galaxy Note 7 smartphone after several caught fire while charging.
But after replacement phones were sent out (complete with a sticker and a green battery icon claiming they were safe for use), they too exhibited the same fiery issues.
Reports say Samsung has now halted production of the Note 7 while it does some re-engineering.
Samsung Electronics has confirmed it is making some production changes to “ensure quality and safety matters”, which will require an adjustment to production volumes.
“If we determine a product safety issue exists, Samsung will take immediate steps approved by the CPSC (US Consumer Product Safety Commission) to resolve the situation,” Samsung said in a statement.
The company has not confirmed nor denied that production has been halted due to the fires in replacement devices.
Sources from companies that work with Samsung in China say the temporarily halt on Note 7 production was undertaken in cooperation with authorities in China and the United States.
Samsung had blamed its battery supplier for providing faulty products, but given that the failure persisted after replacement batteries were issued, many now wonder whether the issues extended further into the design.
On top of the reputational damage with consumers, Samsung carriers Telstra, Optus, Vodafone, Verizon Communications, AT&T Inc and T-Mobile have halted or entirely ceased issues Note 7s.