Samsung Electronics Co Ltd (KRX:005930) has asked people who have purchased its Galaxy Note 7 phablet to stop using the device right away. In a statement issued on Saturday, September 10, Samsung’s mobile chief DJ Koh urged customers to stop using the Note 7 “immediately” and exchange it as soon as possible. Earlier this month, the Korean electronics giant said it would recall all the 2.5 million Galaxy Note 7 units sold worldwide and replace them with a new one.
Turn off and leave off your Note 7
The latest announcement comes as reports of the Note 7 batteries exploding or catching fire keep surfacing. Airline regulators such as the FAA and several airlines have asked passengers not to turn on or use the Galaxy Note 7 during flights. Samsung has said that the battery explosions were because of a manufacturing process error from Samsung SDI. Samsung has stopped sourcing Note 7 batteries from its subsidiary SDI.
On Friday, the US Consumer Product Safety Commission asked the Galaxy Note 7 owners to turn their phones off and leave them off. The Commission was working with Samsung to have an official recall “as soon as possible.” It’s worth pointing out that, according to Samsung, less than 0.1% of the Note 7 phablets were packed with faulty batteries. Samsung SDI was responsible for about 65% of the Note 7 batteries.
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Galaxy Note 7 explodes in the hands of a 6-year-old
Recently, a Galaxy Note 7 exploded in the hands of a 6-year-old boy in Brooklyn, New York while he was watching videos on the phablet. The child was rushed to the hospital with burns to his hands and body. The child has returned home after treatment, but he refuses to touch any phone. There have been many other cases of the Note 7 exploding, including in a hotel room that caused damages worth more than $1,400.
The worldwide recall is expected to cost Samsung up to $1 billion. But an even bigger cause of worry for the Korean company is the damage to its reputation. Analysts were previously expecting Samsung to ship 14 million units of the Note 7 by the end of this year, but now they have revised their estimate to 10 million units.