Moscow. 27 Oct. INTERFAX.RU Company Samsung Electronics has confirmed 140 cases of spontaneous combustion of batteries in smartphones Galaxy Note 7, writes The International Business Times.
In total, the company produced 2.5 million Galaxy Note 7. About 1.59 million devices were sold, of which 1,47 million smartphones replaced under revocable campaign.
the South Korean electronics manufacturer has received 220 complaints of overheating the batteries and fire in the smartphone went on sale in August. After the company announced the replacement of machines, the complaints still continued to be: overheating already replaced the models complained to 119 people.
the Company today held the technical expertise of 117 models from the first batch and 90 copies of those that were replaced. As noted, 47 cases of fire Samsung failed to investigate.
ultimately, the company was able to confirm that overheated and then caught fire 85 smartphones from the first wave of sales and 55 – replaced devices.
the company intends to continue the investigation on the causes of overheating and fire gadgets. The company’s management said that besides the batteries carefully studied the hardware side of smartphones, software, and analyses its production processes.
At the extraordinary General meeting of shareholders held on 27 October, President of Samsung Shin Jong Kyun said that the company still hasn’t determined the cause of the overheating. Meanwhile, the head of the Corporation announced upcoming major changes in the management of the processes of the quality management system.
Earlier in October, Samsung announced a complete cessation of the release of the Galaxy Note 7.
Failed competitor
Samsung unveiled the Galaxy Note 7 in August and began selling it in South Korea on August 19. Then the smartphone was named one of the best Android phones. He was to become a major competitor to the iPhone 7 by Apple, so Samsung tried to release it quickly to gain a competitive advantage over Apple, which was to introduce a new iPhone 7 in the autumn, experts say.
However, on 2 September the company was forced to suspend the implementation of these smartphones around the world and to withdraw the 2.5 million already sold devices due to reports of fire. Major airlines and the authorities of several countries, including Russia, urged not to use the Galaxy Note 7 is on Board and not check them in with Luggage.
Financial loss
because of the scandal capitalization of Samsung decreased by billions of dollars. October 11, the company lost $ 17 billion of market capitalization after the official announcement about stopping all sales of the Galaxy Note 7 and the complete cessation of production.
Earlier it was reported that Samsung Electronics has reduced operating profit in the third quarter of 2017, by 30%, to 5.2 trillion Korean won ($ 4.6 billion), of at least two years, stated in the financial statements of the company. The weak results of the company are connected with the scandal with smartphones Galaxy Note 7.
Initially, Samsung has estimated an operating profit in July-September of 7.8 trillion won (an increase of 5.55% in annual terms), however, after the announcement of Note 7 downgraded its forecast for net profit to 5.2 trillion won, sales to 47 trillion won from 49 trillion won.
Operating profit units Samsung in the production of mobile devices fell by 96 percent to 100 billion won. Earlier, Samsung has already announced that in the fourth quarter of this year and the first quarter of 2017, expects additional losses due to the debacle of Note 7 in the amount of 3.5 trillion won.
Samsung of June 30, had a cash liquidity of about $ 69 billion, is expected to allow the company without difficulty to absorb losses. However, this dual failure can negatively affect the level of trust of consumers to the products of the company, reports the BBC. Some experts believe that the failure has ruined the reputation of the entire line of Galaxy Note and downgraded the relationship to other models of Samsung phones.
