Samsung is racing against time to recall about 2.5 million Galaxy Note 7 units worldwide and replace them with a new one. Customer loyalty and brand power is at stake. More than 70 Galaxy Note 7 phablets have exploded in the US alone, causing serious damage to users and properties. A panicked Samsung – which has lost more than $10 billion in market value in just a few days – has come up with a new way to stop the Note 7 phablets from catching fire.
Korean Galaxy Note 7 users to get the update on Sept.20
In a front-page ad in Korean newspaper Seoul Shinmun (via CNN Money), Samsung said it would release a software update that will prevent the Note 7 batteries from charging above 60% of their capacity. It will prevent the devices from overheating and exploding. But the software update could cause major inconvenience to consumers as 60% battery may not last full day.
The newspaper ad said that the move “prioritizes consumer safety but we apologize for the inconvenience.” The software update will be pushed out in South Korea on September 20, a day after Samsung will start handing out new Galaxy Note 7 with fault-free batteries to users in the country. Meanwhile, the company has advised consumers to trade their Note 7s with replacement devices it is offering until the new Note 7s come out.
ValueWalk's Raul Panganiban interviews Dr. Kathryn Kaminski, Chief Research Strategist at AlphaSimplex, and discuss her approach to investing and the trends she is seeing in regards to quant investing and hedge funds. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with AlphaSimplex's Read More
Will Samsung extend the update to the US?
It’s still unclear whether the software update will be extended to users in other countries like the US and Canada. A Samsung spokeswoman said similar safety measures for users in other countries were under review. In the US, the electronics giant is working with the Consumer Product Safety Commission to figure out how the mass recall of the Note 7 is going to work.
Earlier this month, Samsung announced that it would recall all the 2.5 million Note 7 phablets sold worldwide and replace them with a new one, after reports of the Note 7 devices catching fire or exploding surfaced all over the Internet. The recall is expected to cost Samsung $1 billion, besides affecting the sales of its flagship phablet. Many international airlines and regulators have asked users not to charge, turn on or use the Note 7 during flights.