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10-09-2016 10:04 AM
SEOUL, South Korea (AP) — Samsung Electronics on Saturday recommended South Korean customers to stop using the new Galaxy Note 7 smartphones, which the company is recalling worldwide after several dozen of them caught fire.
In a statement posted on its website, the South Korean technology giant advised local users to visit the company’s service centers to receive rental phones for temporary use. Samsung plans to provide Galaxy Note 7 devices with new batteries in South Korea starting on Sept. 19.
“We again express our sincere apologies to our customers who value our products,” the company said in a statement.
The U.S. Federal Aviation Administration on Thursday warned airline passengers not to turn on or charge Galaxy Note 7s during flights and also not to put the smartphone in their checked bags.
Samsung last week announced plans to recall 2.5 million Galaxy Note 7 phones worldwide after its investigation of the device fires found rechargeable lithium batteries manufactured by one of its suppliers at fault.
The company has confirmed 35 cases of its devices catching fire, most of them occurring while the battery was being charged. Samsung released the jumbo smartphone on Aug. 19.
Source. AP
11-09-2016 11:13 AM
Short term profit will take a big hit but as a huge conglomerate that won't be their problem. Their issue is reputational leading to a bad stock market sentiment and a sharp fall in their market capitalisation. That will have a potential long term effect on the company and their cost of capital (i.e. borrowing costs increase).
Oh and buy an iPhone - better and safer.
11-09-2016 11:46 AM
@jeffkinn wrote:Their issue is reputational leading to a bad stock market sentiment and a sharp fall in their market capitalisation. That will have a potential long term effect on the company and their cost of capital (i.e. borrowing costs increase).
It'll be interesting to see what happens and how much impact this does have.
@kids... I am being strong....
PWIAC
11-09-2016 11:50 AM
13-09-2016 08:33 AM
And now a government ban.
The National Broadcasting and Telecommunications Commission (NBTC) has banned imports of the Galaxy note 7 into Thailand.
Thakorn Thanthasit of the NBTC said that they had contacted Samsung to forbid sale of the device in Thailand in order ensure the safety of users.
Meanwhile, airlines in Thailand have been told to announce to passengers that they may not switch on or charge Samsung Galaxy Note 7 phones on any flights.
Source. ThaiRath
13-09-2016 09:19 AM
Some airlines are now refusing to carry the Note 7 even as cargo let alone with passengers.
This will severely hamper the racall programme.
The disaster has now reduced the value of the company's shares in the market by some $26 billion.
13-09-2016 09:31 AM
I think that was bound to happen.
If airlines are banning passengers from putting the device in their check in baggage I would have thought that containers of a few thousand devices would be a big no no.
It will be interesting to see how this plays out regarding replacing units already in the market, I would guess that freight carriers will need some time before they agree to carry the phones and then only after Samsung can demonstrate that every phone has had the battery replaced. I really can't see Samsung being able to stick to the September 19th date for replacement units.
One worrying thin is that Samsung admit they have no idea where in the world the faulty phones are.
13-09-2016 09:33 AM
Ouch!!!
PWIAC
13-09-2016 01:31 PM
Translation.
SEOUL, South Korea (AP) — Samsung plans to issue a software update for its recalled Galaxy Note 7smartphones that will prevent them from overheating by limiting battery recharges to under 60 percent.
The front page of the Seoul Shinmun, a South Korean daily newspaper, carries a Samsung advertisement announcing the software update plan for any users of the Note 7 who may be disregarding its recall notice and continuing to use the smartphone.
“It is a measure to put consumer safety first but we apologize for causing inconvenience,” Samsung Electronics said. The update for South Korean users will start at 2 a.m. on Sept. 20, it said.
South Korean media earlier reported the software upgrade plan, citing Samsung. It was not clear when the update may roll out overseas. The Yonhap news agency reported that Samsung is in talks with mobile carriers to carry out the same update plan to keep battery power at 60 percent or below at all times.
Samsung plans to begin issuing new Note 7s with batteries it says will not be prone to overheating beginning on Sept. 19. It has recalled 2.5 million of the devices after dozens of cases of them exploding or catching fire. Samsung says the problem stems from a manufacturing glitch in the batteries.
The company has urged consumers to immediately turn off the phones and get them replaced with the new Note 7. But implementing such a large-scale recall is a challenge. Consumers have to visit Samsung service centres or retailers twice — once to get a replacement phone — not a Note 7 — and have a safety check of their existing Galaxy Note 7, and a second time to get a new Note 7. South Koreans are traveling for one of their two biggest national holidays of the year starting Wednesday, which complicates the recall plan.
Samsung did not answer emails and calls seeking comment on Tuesday.
Analysts said the update appears to be a last-ditch effort to contain the crisis.
Samsung “has to contain the battery explosions but people are not returning the phone,” said Peter Yu, an analyst at BNP Paribas. “It is taking a desperate measure.”
Keeping the battery level low could reduce the risk of overheating, but would be equivalent to getting a downgrade of a top-of-the-line phone, said Kim Young Woo, an analyst at SK Securities. The Galaxy Note series is one of the most expensive handset lineup made by Samsung.
“It means that the phone has not been optimized before the release,” Kim said.
Samsung is the world’s largest smartphone maker, and analysts said the recall may leave a larger impact on its brand than earlier estimated. Aviation regulators and airlines have deemed the Note 7 a flight hazard and the U.S. Consumer Product Safety Commission is considering an official product recall.
Canada issued a recall notice on Monday.
The company did not say how many more faulty batteries in the Note 7 have been reported since Sept. 1, when 35 cases were confirmed. In announcing its recall, the Canadian government said one case was confirmed in Canada while Samsung received more than 70 reported cases in the United States alone.
Source: YOUKYUNG LEE, AP Technology Writer
14-09-2016 04:43 AM
That's one way of getting the people to return their phones.
BBC is reporting the same thing here
I was actually about to post it @kids, but I thought I'd check to see if you had already... and you had LOL
PWIAC
17-09-2016 08:06 AM
Samsung plays catch-up
Samsung is rushing to complete a costly recall of the device. It had to pull Note 7 smartphones from 10 markets after dozens caught fire due to faulty batteries.
It plans to resume selling new Galaxy Note 7 smartphones to South Korean customers from Sept. 28 and the US soon afterwards.
The recall has put it at a major disadvantage according to investment manager Ross Gerber of Gerber Kawasaki: “Apple got the gift of all gifts with Samsung creating an exploding phone and the fact that the Samsung Note is a disaster actually really helps Apple.”
Samsung’s brand image has been tarnished and it was criticised by the US Consumer Product Safety Commission for trying to initiate a recall on its own instead of following proper reporting procedures.
Elliot Kaye, the head of the Commission, told reporters about one million phones are effected in the US and he gave this advice: “Well certainly, if it starts charring or it gets overheated, step away from the phone, make sure that it’s of course, if it’s contained, it’s not near anything combustible and immediately – certainly if it’s a fire hazard, contact the fire department, call 911.”
With Apple gaining momentum from the release of the iPhone 7, Samsung is desperately keen to salvage its smartphone sales and its profits in key markets during the busy end-of-year shopping season.
source: Euronews