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The problem couldn’t come at a worse time; the S7 launch had been a huge success and Apple is set to reveal the new iPhone next week
The Korean electronics giant Samsung is expected to announce the recall the newest version of its flagship phablet device, the Galaxy Note 7, after reports emerged that the device has occasionally exploded while charging, this according to the South Korean news agency Yonhap News.
Quoting an anonymous Samsung official, the article says the cause of the explosions has been linked to the battery.
The official said Samsung is expected to announce the results of its findings either this weekend or early next week — which are expected to include comprehensive countermeasures. The reason the announcement is not expected to be made today is because Samsung is in discussion with US partners like Verizon to hash out a gameplan for handling the issue.
The exploding battery reports have already made an impact on Samsung’s Note 7 roll-out as yesterday Reuters reported the company was delaying shipments in South Korea as a result of the explosions. The decision caused a US$7 billion drop in market value.
While recalls are never something a company wants, the news hurts especially bad because it hamstrings a month of significant momentum for Samsung after the successful launch of the S7 smartphone.
Furthermore, Apple is expected to unveil its new iPhone next week and the recall will certainly hurt Samsung’s ability to poach potential Apple customers.
Samsung’s stock has dropped 5.4 per cent from an August 23rd high of KRW1,687,000 (US$1,511) per share to KRW1,600,000 (US$1,433) as of publishing. However, it should be noted that today’s number is still high when compared to the price at the beginning of August; KRW1,548,000 (US$1,386) per share.
The Galaxy Note 7 went on sale in 10 countries on August 19.
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