Three Australian airlines already banned use and charging of the Note 7 and more countries are following the move. The device, which launched last month to considerable fanfare, has a design problem that could cause it to overheat and for batteries built into the smartphone to explode. “If true, then the Note 7 could end up dragging down the rest of the portfolio”.
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Samsung’s Galaxy Note 7 recall is a massive headache for the company.
“We removed all Galaxy Note 7 smartphones last week after Samsung recalled the device because of some technical issues that some of the smartphones were having”.
The global smartphone leader on Saturday urged all customers to turn off their Note 7s and return them as soon as possible as part of the recall which it voluntarily initiated on 2 September.
“He’s already been involved in a lot of the strategy and the decisions, but it’s a step that he takes a more formal, official role in the company”, said a person familiar with the matter, adding that the decision was unrelated to the Galaxy Note 7 issues. Bernstein analysts reckon lost Note 7 sales and recall expenses will knock just 4 percent off Samsung’s 2016 operating profit. “An overheating of the battery cell occurred when the anode-to-cathode came into contact which is a very rare manufacturing process error”, Samsung said.
Samsung is identifying its newer, safe units are with a round sticker with a blue “S” on the top right corner of the box. The notice comes despite the fact that it has not officially gone on sale in India, yet. “Additionally, these devices must be kept out of checked baggage”. It’s possible that airlines, rather than isolating Note 7s, may decide to ban all Samsung phones given the difficulty of differentiating between models. Since the start of the fiasco, Samsung has lost almost $20 billion in market value. The company will also be offering Oculus content voucher worth $50 (approximately Rs 3,350), when the phablet starts shipping.
Taking a director position at Samsung Electronics will give Lee greater room to operate in managing the company’s affairs but also put him under greater scrutiny for the company’s performance. But investors were initially sanguine: Samsung looked to be moving fast enough to contain the damage.
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He advised consumers to use replacement phones which would be loaned by the firm until a new Note 7 equipped with fault-free batteries are provided.
