Exploding Galaxy Note 7 Batteries Could Cost Samsung A Billion Dollars

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By now you must have heard all about the curious case of Exploding Note 7 batteries. Heavily relying on Samsung SDI (which is responsible for the ordeal) as the major battery supplier for Note 7 turned out to be a big misstep. One that could cost Samsung a billion dollars!

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Around 70 percent of Samsung Galaxy Note7 batteries were sourced from Samsung SDI, and the other 30 percent came from Chinese manufacturer ATL. The phones with ATL batteries are running just fine and are mostly meant for the Chinese market. That’s precisely why Samsung Galaxy Note 7 sale is proceeding as scheduled in these markets.

Around 35 cases of Galaxy Note 7 battery exploding were reported worldwide and further investigation held a battery cell issue accountable. Here is the official statement from Samsung.

OFFICIAL STATEMENT FROM SAMSUNG INDIA  ON GALAXY NOTE7 DELAY
Samsung is committed to producing the highest quality products and we take every incident report from our valued customers very seriously. In response to recently reported cases of the new Galaxy Note7, we conducted a thorough investigation and found a battery cell issue.
 To date (as of September 1) there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market. However, because our customers’ safety is an absolute priority at Samsung, we have delayed sales of the Galaxy Note7 in India.

When asked about the financial impact of the recall of over 2 million units, Samsung’s smartphone business head Koh Dong Jin said that it would cost a “heartbreaking amount”.

Also Read: Here’s what’s new in Samsung Galaxy Note7

Post the battery fiasco, Samsung SDI batteries won’t be used in upcoming Galaxy Note 7 units anymore. New batteries will be sourced from ATL.

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Lee Seung-hyuck, an analyst at Korea Investment & Securities, said, “For the global recall of 2.5 million units, Samsung SDI is expected to bear the expense for most of the battery parts. Together with the possible sales decline of Galaxy Note 7, Samsung SDI’s operating loss may stand at around 18 billion won ($16 million) in the third quarter.”

If you already own a Galaxy Note 7, look for “Made in China” or “Made in Vietnam” label on the back cover or info in the ‘About Phone’ settings. The latter is most likely to be using a Samsung SDI battery.

Also Read: Do We Really Need a Turing Phone Cadenza?

Deepak SinghDeepak Singh
Deepak has more than 8 years of experience in covering technology for several eminent publications in India. He currently leads an enthusiastic team of young writers at Smartprix and tries to uphold the highest quality standards.

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