As you might have heard, there have been reports of the Samsung Galaxy Note 7 exploding not just once, but twice. Reports claim that Samsung will only replace the batteries of the recalled phones instead of offering customers a replacement device or a refund. Local reports that Samsung has stopped shipping the flagship phone are not true, according to company spokeswoman Sophia Kim.
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Several people posted images and videos of charred Galaxy Note 7s online and said their phones had caught on fire. South Korea’s Yonhap News said five or six explosions were reported by consumers. The photos and accounts could not immediately be verified. In any case we guess we’ll just have to wait and see, but if you were thinking of getting the Galaxy Note 7, maybe hold off on buying one just yet until this issue has been resolved.
Shares fell as much as 3.5% during trade in Seoul before making a partial recovery to close 2% down on the day.
“It is an unexpected issue and until the cause is confirmed, a short-term impact is inevitable”, Eo Kyu-jin, an analyst at eBEST Investment & Securities, said in a report.
Sister company Samsung SDI Co Ltd (006400.KS) said that while it was a supplier of Galaxy Note 7 batteries, it had received no information to suggest the batteries were faulty.
A YouTube user who says they live in the U.S. uploaded a video of a Galaxy Note 7 with burnt rubber casing and damaged screen under the name Ariel Gonzalez on 29 August.
The news that the Galaxy Note 7 may be faulty, and potentially unsafe to users, is hurting Samsung’s stock as well.
Samsung launched the Note 7 on August 19 in some markets, including South Korea and the U.S.
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Even before the issue of battery explosions emerged, supplies were not keeping up with higher-than-expected demand for the smartphone.
