⚠️⚠️ Samsung Electronics Co Ltd’s mobile business suffered a Huge blow Today as reports of Exploding Batteries forced the Delay of all shipments of New Galaxy 7 smartphones; this also knocked $7 billion off its public stock-market value.
⚠️⚠️ Samsung said it is investigating the reports of phones catching fire and exploding. South Korea’s Yonhap News said six explosions were reported by consumers. It cited pictures of severely damaged phones shared with local online communities, social media and YouTube. The photos and accounts have not been verified yet. Samsung yesterday halted Galaxy Note 7 shipments in South Korea, in spite of the phone’s massive preorder sales success.
⚠️⚠️ Samsung did not confirm its reasoning, but due to the many recent battery explosion Reports from Customers convinced Samsung to suspend All Shipping to local telecom temporarily. In the meantime, new reports Today, indicate that Samsung is considering a Galaxy Note 7 recall of over 400,000 units sold since August 19th, at least in South Korea, and that LiON Battery worries are indeed a Real Problem. Samsung insists that these events should not affect the planned launches of the Galaxy 7 for China and Europe, markets that will receive the handset as expected.
⚠️⚠️ Samsung the global smartphone leader, told Reuters late Wednesday evening that shipments of the Galaxy 7 have been Halted for quality control testing [of its LiON Batteries and Charging apparatus]; also noted, Shipments to South Korea’s top three mobile carriers had been halted, until further notice.
⚠️⚠️ Faults with the new premium flagship Galaxy 7 Note will likely deal a major blow to Samsung, the South Korean giant, which was counting on the Galaxy Note 7 to maintain its strong mobile earnings momentum against Apple Inc’s (AAPL.O) new iPhones 7 and iPhone 7 Plus expected to be unveiled in only 6 Days.
⚠️⚠️ Samsung’s Galaxy 7 has spent $Millions for Prime-Time pre-Launch advertising. Think about it, researching the issue for the power exchange between the LiON Charger, and Galaxy 7’s internal power management system, and it’s LiON Battery will require some time to isolate the issues. Once the issues are re-engineered, Production is Halted, and All of the already Retail Boxed Galaxy 7 units will have to be fixed and repackaged, before any shipments resume.
⚠️⚠️ Samsung has concluded that faulty LiON Polymer batteries are to blame for the explosions. Samsung SDI is the group within Samsung that makes batteries for the Galaxy Note 7. Samsung SDI produces the LiON battery cell, but the battery-pack Production is out-sourced to other firms. Korean ITM Semiconductor produces the battery pack for the Galaxy Note 7’s that are sold in Korea. ITM’s batteries seem to have been the ones that exploded. Meanwhile, most phones sold in China are going to have battery packs from Chinese company Amperex Technology.
⚠️⚠️ Halting the Galaxy 7 Production and the Product release is Major Buzz-Killer for Samsung, especially given all of the hard-earned and Expensive Excitement that the Note 7 have garnered in recent months.
⚠️⚠️ Apple Current Launch of the iPhone 7 and iPhone 7 Plus puts all the more pressure on Samsung to contain and fix this issue quickly. I would not be surprised if Apple expedited the access to its On-Line Ordering for the iPhone 7. The timing of the Galaxy 7 Flame-Out of their LiON Batteries, Charger and Power Control Circuitry could not have been worse.
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