Industry sources told Yonhap News Agency that the company has ordered around 4 million new batteries from China’s ATL to use as replacements in the Note 7 smartphones.
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Nomura said it had cut its forecast for Samsung’s third-quarter mobile operating profit by 900 billion won to 3.1 trillion won in the wake of the Note 7 recall.
Samsung’s alert urging customers to bring their Note 7 phones in for a replacement as soon as possible followed warnings from aviation authorities and airlines that the devices shouldn’t be used aboard planes.
Samsung Electronics Co Ltd’s 005930.KS shares fell to their lowest level in almost two months on Monday after the tech giant told customers to switch off and return their new Galaxy Note 7 smartphones due to fire-prone batteries.
Consumers can visit Samsung’s service centers to receive rental phones for temporary use.
Samsung’s share price is now at a two-month low, whereas the Note 7 was expected to maintain momentum for the company in the latter stages of 2016. Samsung plans to provide Galaxy Note 7 devices with new batteries in South Korea starting September 19, but schedules for other countries vary.
Three more airlines have joined the fleets that have banned the Samsung Galaxy 7 from checked baggage, and are asking passengers not to turn on or charge these smartphones on aircraft.
This came after an investigation into reports of the devices catching fire found rechargeable lithium batteries manufactured by one of its suppliers were faulty. The company confirmed it is working with the United States Consumer Product Safety Commission (CPSC) to recall the phones after discovering battery cell issues.
America’s aviation regulator – the Federal Aviation Administration – issued its warning against the Note 7 on Thursday, with m any airlines, including Australia’s Qantas, immediately enforcing its advice.
Since then, airlines or air safety agencies around the world have warned passengers against using them on flights.
Samsung said it had confirmed 35 cases of the Galaxy Note 7 catching fire as of September 1, majority occurring while the battery was being charged.
For UK customers who have Galaxy Note7 devices, Samsung in collaboration with its partners and operators, will voluntarily replace their current device with a new one.
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The cascade of negative headlines has deepened investors’ worries about how badly the Note 7 debacle could hurt Samsung’s reputation.
