About 2.5 million pieces of Galaxy Note 7 have since been recalled. The new phone features components from those recalled devices, as well as unused parts Samsung has in stock.
Image source Samsung
Environmentalists had been putting pressure on the firm to reuse Galaxy Note 7 components to reduce the amount of so-called e-waste.
Samsung’s investigation into its Galaxy Note 7 fiasco has found that the overheating and burning of the phones was caused by faults with their batteries.
The tech giant had axed its iPhone rival in October 2016 after an earlier botched recall and re-release.
The recall is thought to have cost $5.3 billion and was hugely damaging for Samsung’s reputation.
On January 23, the South Korean company said that neither software nor hardware were at fault, only the batteries.
Internal and independent investigations “concluded that batteries were found to be the cause of the Note 7 incidents”, the South Korean technology giant said in a statement.
Samsung said that errors both in design and manufacturing affected batteries by two different manufacturers.
According to the findings, the problems centered on insufficient insulation material within the batteries and a design that did not give enough room to safely accommodate the batteries’ electrodes.
Photo Samsung
The company said it was “taking responsibility for our failure to ultimately identify and verify the issues arising out of the battery design and manufacturing process”.
Samsung did not name the battery suppliers during their presentation, though last year had identified them as their affiliate Samsung SDI and Chinese company Amperex Technology.
The company said it did not plan to take legal action and that it accepted responsibility for asking the suppliers to meet certain specifications.
Launched in August 2016, Samsung’s Note 7 device was marketed as a large-screen top-end device and positioned as a rival to Apple’s iPhone.
However, in September, Samsung had to recall about 2.5 million phones after complaints of overheating and exploding batteries.
Samsung insisted that all replaced devices were safe. However, that was followed by reports that those phones were also overheating.
The company said there would be no repeat of the fires in future devices such as the upcoming S8.
“We look forward to moving ahead with a renewed commitment to safety. The lessons of the past several months are now deeply reflected in our processes and in our culture.”
Samsung also said it would not unveil its upcoming Galaxy S8 phone at the Mobile World Congress in Barcelona, as had been expected, suggesting the flagship model’s launch may be later in the year.
The head of Samsung’s smartphone business, Koh Dong-jin said the phone would not get a launch event at the event in Barcelona in February unlike previous Galaxy S smartphones.
Samsung Electronics has announced that its profit in Q4 of 2016 surged 50% despite the fiasco with its flagship Note 7 phone.
Analysts had expected the company’s profits to surge thanks to its mainstay semiconductor business, but the result surpassed even the most optimistic forecasts. The semiconductor division cashed in on strong demand and a tight supply for microchips during the September-December period, likely contributing to more than half of its quarterly earnings.
The earnings estimate would mark Samsung’s highest quarterly profit since 2013.
In October 2016, the world’s largest smartphone maker had to scrap the Note 7 after batteries caught fire and even replacement devices went up in smoke.
Samsung said it expected to post 9.2 trillion won ($7.8 billion) in operating profit for the months from September to December.
In an earlier profit forecast for the fourth quarter, Samsung had said it expected the Note 7 recall would mean a $2.1 billion hit to their profits.
Samsung first issued a recall for the Galaxy Note 7 in September following complaints about exploding batteries.
After replacement devices deemed safe were also found to overheat and catch fire, Samsung scrapped the phone entirely.
The company said that it will “very soon” share details of its inquiry into the cause of the Note 7 problems.
Samsung will disclose a detailed earnings release for Q4 of 2016 in late January which will give more insights into the performance of its individual businesses.
Samsung Galaxy Note 7 phones have been banned on all US flights after reports of the device catching fire, the US Department of Transportation has announced.
Passengers will not be able to take their Galaxy Note 7 phones on flights or in their luggage to and from the US from 16:00 GMT on October 15. The passengers attempting to travel with the device are informed that the phone will be confiscated and the traveler can be fined.
The Federal Aviation Administration (FAA) had previously advised against packing the phones in luggage.
Photo Samsung
This week, Samsung permanently stopped Galaxy Note 7 production.
Transportation Secretary Anthony Foxx said in a statement: “We recognize that banning these phones from airlines will inconvenience some passengers, but the safety of all those aboard an aircraft must take priority.
“We are taking this additional step because even one fire incident in-flight poses a high risk of severe personal injury and puts many lives at risk.”
The South Korean tech giant recalled around 2.5 million Galaxy Note 7phones in September after complaints of exploding batteries.
While the company later insisted that all replaced devices were safe, there were reports that those phones were catching fire too.
Samsung then said it would stop Galaxy Note 7 production.
US Consumer Product Safety Commission Chairman Elliot Kaye said: “The fire hazard with the original Note 7 and with the replacement Note 7 is simply too great for anyone to risk it and not respond to this official recall.
“I would like to remind consumers once again to take advantage of the remedies offered, including a full refund. It’s the right thing to do and the safest thing to do.”
Samsung Electronics has revised down its Q3 profit forecast due to the scrapping of its Galaxy Note 7 smartphone.
The company now expects Q3 profits of 5.2 trillion won ($4.7 billion), which is a third lower than its original estimate of 7.8 trillion won.
The Galaxy Note 7 was recalled last month after battery fires, but after replacement phones experienced the same problem, Samsung scrapped the device.
Ahead of the profit warning, the South Korean company’s shares fell 0.8% on October 12.
That added to October 11 8% fall.
Photo Samsung
Samsung has seen more than $20 billion wiped off its market value in two days.
Its shares have fallen on concerns that the current crisis will go beyond the costs of the recall and affect the brand’s overall reputation.
According to analysts, the Note 7 crisis could cost Samsung in the long run, particularly coming just as rivals, such as Google and Apple, have announced new high-end smartphones.
The Galaxy Note 7 had been seen as the main rival to Apple’s new iPhone 7 model. Samsung’s woes have sent Apple’s shares to a 10-month high.
Last month, Samsung recalled around 2.5 million Galaxy Note 7 phones after complaints of exploding batteries.
The company later insisted that all replaced devices were safe. However, that was followed by reports that those phones were catching fire too.
On October 11, Samsung said it would permanently cease production of the device and urged owners to turn it off.
Samsung Galaxy Note 7 users traveling by plane have been warned by the Federal Aviation Administration (FAA) not to switch on or charge their phones when on board the plane.
The FAA also advised against packing the phones into any checked-in luggage.
Last week, Samsung recalled the Galaxy Note 7 smartphone after reports emerged of the device exploding during or after charging.
Qantas and Virgin Australia have also told customers not to charge or use the smartphone during flights.
Samsung has said that battery problems were behind the phones catching fire, but that it was difficult to work out which phones were affected among those sold.
Photo Samsung
The FAA said: “In light of recent incidents and concerns raised by Samsung about its Galaxy Note 7 devices, the Federal Aviation Administration strongly advises passengers not to turn on or charge these devices on board aircraft and not to stow them in any checked baggage.”
Following Galaxy Note 7 recall, Qantas said on September 8 it was “requesting that passengers who own [the devices] do not switch on or charge them in-flight.”
The Galaxy Note 7 was launched last month and has been otherwise generally well-received by consumers and critics.
Some 2.5 million phones have been shipped globally.
Samsung has said customers who have already bought the phone will be able to swap it for a new one and that it would take about two weeks to prepare replacement devices.
The US trade group Airlines for America said it was “closely monitoring” the Galaxy Note 7 issue and that carriers in the US would make their own ruling over the use of the phone on board.
An Airlines for America spokesperson said in a statement:“Each individual carrier makes determinations, in compliance with FAA safety rules and regulations, as to what is permitted to be carried on board and in the cargo hold.”
South Korea-listed shares of Samsung Electronics were down close to 3% in early Friday trade.
Samsung Electronics has decided to recall its flagship Galaxy Note 7 smartphone saying that battery problems were behind phones catching fire.
According to US and South Korea reports, the phone “exploded” during or after charging.
Samsung said customers who already bought Galaxy Note 7 will be able to swap it for a new one.
The recall comes just one week ahead of Apple’s expected presentation of a new iPhone model.
Photo Samsung
Samsung’s mobile business president Koh Dong-jin told reporters: “We have received several reports of battery explosion on the Note 7 that and it has been confirmed that it was a battery cell problem.”
The South Korean company said it would take about two weeks to prepare replacement devices.
According to Samsung, the Galaxy Note 7 has been launched in 10 countries so far but with different companies supplying the batteries.
Over the past days, several users had reported their phones caught fire or exploded while charging, and Samsung said it had confirmed 35 such cases.
The Galaxy Note 7 was only launched on August 19 and has since them been generally well-received by critics and consumers.
The model is the latest of Samsungs’ series of so called phablets – smartphones with very large screens and, in the case of Samsung, featuring a stylus.
Samsung also added an iris scanner to the Note 7, which lets users unlock the phone by detecting patterns in the eyes.
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