After Note 7 report, Samsung may delay launch of new Galaxy S8

SEOUL — Samsung Electronics Co Ltd indicated on Monday that its latest flagship Galaxy S smartphone could be delayed as it pledged to enhance product safety following an investigation into the cause of fires in its premium Note 7 devices.

Wrapping up its months-long probe, the world’s top smartphone maker said faulty batteries from two suppliers were to blame for a product failure that wiped $5.3 billion (4.3 billion pounds) off its operating profit.

Samsung mobile chief Koh Dong-jin said procedures had been put in place to avoid a repeat of the fires as the South Korean firm prepares to launch the Galaxy S8, its first premium handset since the Note 7′s demise.

“The lessons of this incident are deeply reflected in our culture and process,” Koh told reporters at a press briefing. “Samsung Electronics will be working hard to regain consumer trust.”

Koh said the Galaxy S8 would not be unveiled at the Mobile World Congress trade show in Barcelona beginning Feb. 27, the traditional forum for Galaxy S series launches. He did not comment on when the company planned to launch the handset, though analysts expect it to start selling by April.

Investors have said Samsung needs to reassure consumers that it is on top of the Note 7 problem and can be trusted to fix it.

Samsung’s reputation took a hammering after it announced a recall of fire-prone Note 7s, only for reports to emerge that replacement devices also caught fire. Images of melted Samsung devices spread on social media and airlines banned travellers from carrying them on flights.

The handset, Samsung’s answer to Apple Inc’s iPhones, was withdrawn from sale in October less than two months after its launch, in one of the biggest failures in tech history.

Samsung said later on Monday it has not decided whether to reuse parts in the recovered Note 7s or resell any recalled phones. A person familiar with the matter told Reuters reselling some Note 7s as refurbished phones was an option.

The firm said it has recovered 96 percent of the 3.06 million Note 7s sold to consumers.

Short circuits

Investigations by internal and independent experts ruled out problems with the Note 7′s hardware and software. Instead, they said the batteries, which came from two suppliers, featured different manufacturing defects or design flaws that caused them to short-circuit.

“The odds that two different suppliers had issue with the same phone is an extremely low likelihood and may signal we have reached an inflection point in smartphone battery technology,” said Patrick Moorhead, president of technology analyst and advisory firm Moor Insights & Strategy.

Samsung did not name the suppliers on Monday but previously identified them as affiliate Samsung SDI Co Ltd and China’s Amperex Technology Ltd. SDI said separately it would invest 150 billion won (103.8 million pounds) to improve product safety and expected to continue supplying batteries for Samsung phones. ATL declined to comment.

Samsung said it accepted responsibility and would not take legal action against suppliers. The company touted longer battery life and fast charging as major improvements when it launched the Note 7.

“The current situation is not largely different from that of the first recall, when Samsung pointed the finger at battery defects,” said Park Chul-wan, a former director of the Center for Advanced Batteries at the Korea Electronics Technology Institute.

Battery checks

Among other measures to boost safety, Samsung said it had implemented an eight-point battery check system to avoid any such problems going unnoticed again.

While Samsung’s mobile division is widely expected to have bounced back from the Note 7 failure during the fourth quarter, experts remained cautious about the outlook for sales of future flagship devices.

“Consumers will accept the results (of the probe) only if there are no problems with the S8,” said Park.

Moorhead, however, said he thought Samsung had done enough to convince consumers that it can prevent future issues.

Samsung Electronics shares ended up 2.3 percent in a flat wider market. Analysts said the rise was mainly due to a healthy outlook for makers of tech components such as memory chips but also boosted by hopes the firm will be able to put the Note 7 fiasco behind it.

The firm expects fourth-quarter operating profit to hit a more than three-year high when it reports earnings on Tuesday, driven by booming chip sales.

source: interaksyon.com

Samsung PH urges Note 7 owners to return the mobile device, now

MANILA — Samsung Philippines is now urging owners of the combustible Galaxy Note 7 to exchange their units for a Galaxy S7 or ask for a full refund from their place of purchase.

In a statement, Samsung Philippines said they are now “working closely with local telco partners and authorized dealers to urge consumer to take the next steps” which is as follows:

1. Exchange your Galaxy Note 7 for a Galaxy S7 edge or Galaxy S7, with the store to reimburse any price difference. Or,
2. A full refund.

Customers who purchased through Globe or Smart were also advised to contact their telco operator to exchange their units.

In an earlier advisory, Smart also urged their subscribers to contact their hotline *888 or to visit any of their nearby stores for the appropriate assistance. Globe likewise said they will facilitate the replacement of the device for their subscribers.

In a similar gesture, Globe said in a statement that they will discontinue selling Samsung Note7 and will no longer issue same device replacements to customers.

The telco has implemented a process to retrieve Note 7 units from customers and replace them with a device of equivalent value.

“We will be in touch with our customers within the next 4 days,” Globe said.

In an October 11 statement, Samsung global has advised its owners of Note7 to power down their units after reports of supposedly safe replacement units of the Note7 also caught fire. Samsung also announced that they are coordinating with their carrier and retail partners to stop sales of the Note7.

“Consumers with either an original Galaxy Note7 or replacement Note 7 device should power down and stop using the device and take advantage of the remedies available,” Samsung said.

source: interaksyon.com

Samsung suspends production of recalled Note 7: report

SEOUL, South Korea — Samsung Electronics has suspended production of its Galaxy Note 7 smartphone, a report said Monday, a month after a recall prompted by battery explosions and a day after two major overseas distributors halted replacements.

Samsung, the world’s largest smartphone maker, declined to comment on the report by South Korea’s Yonhap news agency, which was sourced to an unidentified official with an unnamed Samsung supplier.

The official told Yonhap the decision to temporarily halt production was taken in cooperation with consumer safety regulators from South Korea, the United States and China.

Samsung decided on September 2 to halt the sale of the Galaxy Note 7 and recall those sold after complaints that its lithium-ion battery exploded while charging.

With images of charred phones flooding social media, the unprecedented recall was a humiliation for a firm that prides itself as an icon of innovation and quality.

The recall process initially stumbled with some mixed messages, but seemed to be on track until last week when reports emerged of similar problems with some of the replacement phones.

On Sunday, US telecommunications firm AT&T and German rival T-Mobile said they would halt exchanges of recalled Samsung Galaxy Note 7s pending further investigations.

The announcement saw Samsung’s share price plunge by as much as four percent in early morning trade on Monday — even before the Yonhap report came out.

At midday, Samsung shares were trading at 1.65 million won — down 3.2 percent from Friday’s close.

AT&T said it would still offer customers the option to exchange Galaxy Note 7s for another Samsung smartphone or other device of their choice.

T-Mobile said it was halting sales of the smartphone, as well as the exchanges.

Samsung has so far declined to confirm any problem with its replacement phones.

The South Korean conglomerate’s handling of the Note 7 recall has placed a spotlight on management at a time when it is navigating a tricky generational power transfer within the founding Lee family.

Industry experts have criticised the Lee dynasty for controlling the vast group through a complex web of cross shareholdings, although they only directly own about five percent of total stocks.

Samsung on Friday issued a stronger-than-expected operating profit forecast for the third quarter despite the impact of the recall that, according to some analysts, could cost up to $2 billion.

source: interaksyon.com