Shortly after Samsung had launched the Galaxy Note 7 last August there were many reported cases of the battery exploding while charging. After these reports were made Samsung had a recall of roughly 2.5 million phones in an attempt to resolve this issue.
Then Samsung released the following statement: “We are working with relevant regulatory bodies to investigate the recently reported cases involving the Galaxy Note 7,” the company said.
“Because consumers’ safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note 7 while the investigation is taking place.”
Samsung worked on the defective phones and they thought they had fixed the problem. They stated that the phones were fixed and they had started shipping them back to the cell phone carriers.
However, last week one of the Galaxy Note 7 replacement phones started smoking on a US plane. A Southwest Airlines Co flight to Baltimore was evacuated on Wednesday after the phone started smoking. Luckily the plane was still at the boarding gate, so the plane was evacuated with no reported injuries.
Sara Green, the wife of the owner of the phone stated that her husband had replaced the phone approximately two weeks ago after he received a text message from Samsung.
Yonhap, a South Korean news agency stated that Samsung decided to temporarily halt the production of the Galaxy Note 7.
This decision was made after a conversation with safety regulators because they realized that the replacement phones pose a significant fire hazard. The decision to halt the production of the phone has now been made permanent.
Shortly thereafter Samsung released a statement stating that they would move quickly to investigate the reported case and work with the US Consumer Product Safety Commission (CPSC).
Samsung has always had a great reputation in the cell phone industry. However, their reputation has suffered as a result of the faulty battery in the Galaxy Note 7. The Galaxy Note 7 was supposed to give Apple some competition with their newly released iPhone 7 and iPhone 7 plus.
I feel bad for Samsung because the Galaxy Note 7 is a great phone and it would have done really well if the issue with the battery could have been resolved.
The Galaxy Note 7 will be missed, this is the most expensive phone that Samsung has ever made. Analysts have estimated that the first recall of the Galaxy Note 7 may have cost the company between $1 – $2 billion dollars. This is due to the cost of replacing the phones and the price of the Samsung stock being reduced.
After reports of the exploding batteries in September went public, the Wall Street Journal reported that investors wiped more than $10 billion off the share price of Samsung.
It seems as though Samsung tried their best to fix this problem, however, they were unable to do so. As a result of this Samsung has decided to permanently stop making the Galaxy Note 7. A statement was recently issued by Samsung which confirms that the production has ended.
It’s unclear what compensation would be offered to Samsung customers who already own the Galaxy Note 7. Samsung will probably release a statement about this within the next few days.
On October 10 Samsung warned customers who were still using the phone. Owners of the defective phones were told to immediately stop using their phones and turn them off.
As more and more reports of the defective phones surfaced, Samsung released a statement saying that they had asked retailers around the world to stop selling the Galaxy Note 7. So where does Samsung go from here?