South Korean tech titan Samsung initiates a recall of Galaxy Note 7 units due to battery fires and explosions, according to sources. While this may be a big blow to the company, they would still like to replace the units to maintain credibility.
Samsung Electronics has been in the industry for a long time and the latest news must have been one of their biggest flaws. The impact of the problem might cause them millions or billions of dollars for refund and unit replacement.
However, Wall Street Journal reported that the company will implement the “exchange programs” in 10 countries. It will take them two weeks to replace all the faulty Galaxy Note 7 with a new one.
Meanwhile, it must be a big lesson for Samsung. As a result. They are now conducting intensive battery tests for the units that they will distribute.
The test will commence on Sept. 19. On the other hand, the report stated that the incident caused the company around 3% loss of shares in South Korea.
“It has been confirmed that it was a battery cell problem,” said Samsung’s handset division chiefKoh Dong-jin. He did not identify the suppliers.
Read more: Galaxy Note 7 Release Cancelled Due to Explosion Danger?
Also, he did not reveal the total cost of the liability but he said that it “breaks his heart.” However, another report from Bloomberg (via Sydney Morning Herald) revealed that Samsung might spend around $1 billion dollars for the recall of Galaxy Note 7.
The total number of units for replacement is about 2.5 million, as per the report. The website noted that the timing is worse because of its competitor, Apple, which will announce iPhone 7 in a few days.
“The potential damage to reputation is far greater than short-term financial losses,” said Chang Sea Jin, a professor at the National University of Singapore.
Stay tuned for more details on how Samsung will issue a refund for Galaxy Note 7 in the coming days.