Samsung’s Galaxy Note 7 is still trying to recover from the battery fiasco. Samsung has shown transparency by suspending the Note 7 sales and recalling all the 2.5 million Note 7 units sold so far. But one after another Galaxy Note 7 battery explosions while charging have dealt a big blow to the Korean company’s reputation. Earlier this week, a Note 7 battery explosion at an Australian hotel caused damages worth $1,400.
A precautionary measure
To prevent the in-flight explosion of Galaxy Note 7 batteries, Australian airlines have banned customers from using or charging Samsung’s flagship phablet during the flight. A Qantas spokesman said in a statement that the airline had requested its passengers not to switch on or charge the Galaxy Note 7 in-flight. The request applies to both domestic and international flights. It also applies to Jetstar, the low-cost subsidiary of Qantas.
Another company Virgin Australia has issued a similar statement due to the Note 7’s fire-prone batteries. Virgin Australia was making on-board announcements before departures. Customers will still be able to bring their phones on flights, though. The Australian carriers said they did so as a precaution following the mass recall of the Galaxy Note 7 worldwide.
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FAA considering its response to the Galaxy Note 7 issue
According to Gizmodo, the US Federal Aviation Administration (FAA) was also considering its response to the issue. The FAA is working on “guidance related to this issue.” It’s worth pointing out that less than 0.1% of the Galaxy Note 7 units were packed with faulty batteries that were supplied by Samsung SDI. The Korean company has stopped sourcing Note 7 batteries from its subsidiary Samsung SDI.
But much of the damage is already done. The worldwide recall is estimated to cost Samsung about $1 billion. Analysts have also slashed their Note 7 sales forecast from 14 million units to 10 million units by the end of this year. It would result in direct revenue loss for Samsung’s mobile business. On top of that, experts believe that Apple could attract some of the potential Galaxy Note 7 buyers to its newly launched iPhone 7 and 7 Plus.
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