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Samsung Galaxy Note 7 Recall May Cost The Company $1 Billion

In a bid to fix the damage done by the global recall of its flagship premium device Galaxy Note 7 over batteryfaults, Samsung said they would start exchanging the smartphones as early as next week and customers could swap it with either the Galaxy S7 or S7 Edge. “Samsung did not say when the Note 7 will be available for general purchase”, the report added. Just like its predecessors, the Galaxy Note 7 was highly anticipated in the smartphone space.

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South Korean tech giant Samsung Electronics announced the global recall of the Note 7 smartphones on Friday as some batteries caught fire while being charged.

The global recall was a setback for Samsung and somewhat happy news for Apple as it prepared to launch iPhone 7 (on September 7), experts said. Mobile carriers in South Korea are also offering full refunds for the Note 7.

Samsung Australia said in a statement that it had liaised with Qantas and Virgin Australia following the recall.

Consumer advocacy group Choice Australia’s head of media Tom Godfrey said customers were better off pushing for a refund given Samsung’s track record of washing machine recalls. “We are working closely with our partners to ensure the replacement experience is as convenient and efficient as possible”, said Samsung. Both companies are expected to bear the cost of the recall. The launch of the iPhone 7 Plus is expected to give stiff competition to the Galaxy Note 7. Apple is expected to launch the iPhone 7 and the iPhone 7 Plus on September 7.

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All indications are that Apple’s new iPhone 7, which will be unveiled today, may be one of the more underwhelming releases in the product’s history. Only time will tell how badly the battery issue of the Galaxy Note 7 has affected the company’s overall smartphone sales.

Samsung recalls Note7 after battery fires