8 Facts about Samsung Galaxy Note 7 Recall You Might Not Know

If you haven’t heard about it, Samsung Galaxy Note 7 is having some trouble.

For once, it wasn’t the launch of Apple’s latest iPhone holding people’s attention but the latest troubles of South Korean company, Samsung Electronics Co.

Reports of Note 7 exploding has forced the company to halt shipments of their latest flagship models, and consider the option of recalling current models.

Here are 8 facts about the recall you might not know.

1. The issue stemmed from the battery

Of the millions of Samsung Galaxy Note 7 shipped out by Samsung, there were 35 cases of the smartphone catching fire reported to the company.

A thorough investigation was conducted and it was found that it was a battery issue.

2. Samsung to investigate down the supply chain to investigate possible battery defects

Having narrowed down the cause, Samsung is now prepared to hunt down and identify possible defective batteries in their product.

However, that doesn’t mean that they are only going to replace possibly affected devices. Which brings us to #3.

3. Samsung will replace current Note 7 device in Singapore with new models

In a Facebook post at the official Samsung Mobile Singapore Facebook Page, the company stated that more information about the replacement of Samsung Galaxy Note 7 models will be released this week.

4. The battery supplier took a hit

Samsung Electronics Co. has stopped ordering from Samsung SDI Co., the battery company that supplied 70 percent of Note 7’s battery. The other 30 percent was supplied by Chinese company Amperex Technology Ltd.

Samsung SDI shares fell by 3.2%, bringing their 2-week decline to 11% while Samsung Electronics’ stock didn’t change much.

5. Samsung’s recall of Note 7 is a “heartbreaking amount”

Estimates of the cost of Samsung’s recall put the amount at around $1 billion or less. However, it was noted that the amount is less than 5% of their projected net income this year.

Oh, their projected net income stands at an impressive 23 trillion won (~ S$28 billion) for this year.

6. Samsung Galaxy Note 7 to go head-to-head against Apple Inc. iPhone 7

Samsung was banging on the first-mover advantage against Apple iPhone 7 which will be coming to Singapore soon.

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The phone has gained favourable reviews in the absence of its competitor but the advantage has all but evaporated ever since their Note 7 sales were stopped.

7. Samsung Vice Chairman Lee Jae Yong allegedly the man behind the recall

According to Sanghyun Park, an equity analyst at Pelham Smithers Associates, he’s convinced that the decision for the recall comes directly from him.

As a member of Samsung’s founding family, it made sense that he would want to protect the company’s reputation founded by his grandfather.

8. The recall might just recover the long term damage to Samsung

As with all technology, defective models, especially those hazardous to users, will cause long-term damage to the company’s reputation.

However, Samsung’s quick response to the crisis and their fast handling of the situation might just lead to a more favourable outcome for them.


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After all, which type of company will you like more?

A company which has no huge crisis to date (and so you don’t know what they’ll do if it occurs) or one which had a huge crisis and proved that they are able to handle it effectively and more importantly, for the safety of their users instead of profits?


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Well played, Samsung.

Featured Image: slashgear.com

This article was first published on goodyfeed.com

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