Analysts said the recall could torpedo Galaxy Note 7 sales and have a lasting impact on the $211 billion company’s brand image, which could derail a recovery in its smartphone market share against rivals like Apple Inc AAPL.O .
Advertisement
That same day, Samsung and fire officials said they would be launching investigations after a Florida family said that a Galaxy Note7 smartphone had exploded in their Jeep on Labor Day, setting the entire vehicle on fire and destroying it.
Following the recall of millions of its newly launched Galaxy Note 7s last week, Samsung Electronics urged consumers to halt using the phablet immediately and exchange them as soon as possible due to a battery problem.
Australian airlines have banned passengers from using or charging the Note 7 during flights as there were reports of the device exploding while charging.
Consumers can visit Samsung’s service centers to receive rental phones for temporary use.
The company could delay replacement of the Note 7 phones with new ones, as it said that the replacement Note 7 phones will be issued to exchange program participants upon completion of the CPSC process. “Passengers have also been advised not to stow them in their checked-in baggage”, said B S Bhullar, Director General of Civil Aviation, in a statement.
The airline operator said the action falls in line with the safety directives of the European Aviation Safety Agency (EASA) and the US Federation Aviation Administration (FAA) following reports of explosions from faulty batteries.
The company promised to offer new replacements to all buyers at home and overseas.
Advertisement
There are at least two more cases that Samsung said it is aware of – one at a hotel in Perth, Australia, and another in St. Petersburg, Florida, where a family reported that a Galaxy Note 7 left charging in their Jeep had caught fire, destroying the vehicle. To placate users, Samsung further offered consumers a US$25 gift card or bill credit from select carrier retail outlets.
