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Samsung Electronics halts shipments of Galaxy Note 7 after explosion reports
Collected
2016.09.01
Distributed
2016.09.02
Source
Go Direct
Samsung Electronics Co. temporarily stopped supplying its newly-launched flagship premium smartphone Galaxy Note 7 to South Korean mobile carriers amid consumer concerns of safety of the new premium phone after reports of explosion while charging.

According to the local telecommunications industry on Wednesday, the company halted deliveries of the Note 7 to the country’s three mobile carriers, SK Telecom Co., KT Corp., and LG Uplus Corp. early this week, but whether the supply stoppage is related to the explosion issue remains unknown.

Samsung Electronics said shipments of the Note 7 are being delayed as it is conducting additional quality tests on the phone.

The major setback came as the latest large-screen phone with iris scanning technology became a blockbuster hit with its pre-orders exceeding 400,000 units after its launch on August 19.

A total of five explosion cases have been reported online at home and abroad so far. Pictures and videos posted on online forums and social networking sites show that the phone was severely damaged and almost burned up. While the cause is still not confirmed, its USB-C port is speculated for fast charging might have caused the fault. Battery heat is another suspected culprit.

Samsung Electronics is testing on the faulty products and is expected to release the results as soon as possible. Industry watchers said the possibility of a massive recall can’t be ruled out if the company fails to respond to the issue in a prompt manner. Some suggested that the defective batteries might have been made by Samsung SDI Co., a battery making unit of Samsung Group.

If the quality control problem is confirmed, it would weigh on the company’s mobile earnings that helped it post handsome financial results in the second quarter ended June. Its shares were down 2.8 percent, or 45,000 won, at 1,575,000 won as of 1:25 p.m. on Thursday.

By Lee Gyung-jin and Yoon Jin-ho

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