Two and a half million phones in 10 countries are being recalled by Samsung. The issue, according to Samsung officials, is due to faulty batteries. Some of the smartphones that have been released have exploded while charging. Samsung is still unable to provide a timeline on when buyers of the Note7 will receive a replacement phone. The naming of this timeline will be especially important in markets like the United States and Canada.
Samsung Suffers Due to Note7
Over the span of two days Samsung lost a total of $22 billion in market value. Investors will now have to factor in a large hit to the company’s bottom line due to the warning now attached to the new Note7.
Many public places, like airports, have banned the Note7 completely, prohibiting people from traveling with the phones. Airport personnel have even warned travelers about using their devices on flights.
Bryan Ma, vice president of devices research for IDC said that Samsung’s nightmare is getting worse as airlines, rather than isolating the Note7s, may totally ban all Samsung phones given the difficulty of identifying all the models. If this happens, the Note7 could end up dragging down the rest of the models as well.
Samsung Stock is Hit by Note7
The Korean-based company spent a lot of money on marketing the new Note7 to have the release blow up in their faces. Although they were able to release the product before Apple released its iPhone 7, the bans and warning attached to the newest Samsung phone has hurt the company in the stock market. In just one week shares of the company have dropped 11 percent, which is the largest decline since 2008. Damages from the issues with the phone may surpass $1 billion.
In addition to dealing with shareholders and investors Samsung has another issue to tackle. Company leaders now have to worry about whether or not there is enough supply of Note7s to replace the millions that have been recalled already. Samsung has begun to provide customers whose devices have been recalled refunds as well as replacements.
What Samsung Devices Have Been Recalled?
If you have purchased a Galaxy Note7 and believe your device may be covered in the recall, read these notes about the recall:
- Samsung announced the recall as a “voluntary recall and exchange program.”
- The affected devices were sold in the U.S. before September 15, 2016.
- If your device is affected by the recall Samsung suggest that you stop using your device, power it down and immediately exchange it using the U.S. Note7 Exchange Program.
- The exchange program allows you to exchange your current Note7 with a new Note7, which will be available no later than September 21.
- You can also exchange your Note7 for the Galaxy S7 or the S7 edge. You will receive a refund of the price difference between devices as well as any accessories bought for the Note7.
- If you do not want to exchange your device but would prefer a full refund you can contact your point of purchase for the refund.
- Customers who exchange a Note7 device will receive a $25 gift card, in-store credit, in-store accessory credit or bill credit from select carriers.
Samsung is concerned with how quickly it will be able to move the new Note7s out to the U.S. and Canadian markets and the company will likely see a loss this quarter due to the complications with the Note. However, Samsung Electronics Co., Ltd. showed a growth of 2 percent Monday morning.
Did you buy the new Note7? Was it effected by the recall?
Photo: Flickr: Aaron Yoo