At a press conference dedicated to the problems with Galaxy Note 7, on January 23 in Seoul was made head of mobile division Samsung Electronics Dongen Koch. He spoke in detail about the investigation and apologized to users and partners.
To determine the cause of the fire engineers together with experts from independent organizations investigated more than 200 thousand units and 30 thousand batteries. A thorough check has been hardware and software part of Galaxy Note7, build processes, quality control and delivery to points of sale.
“the investigation revealed that the cause of the incidents were the shortcomings of the design of the batteries and the technological process of Assembly of the device,” reads the official statement of Samsung.
the Corporation did not shift the blame on others and stated that the responsibility for that failed to identify and remedy possible problems before Galaxy Note7 on sale, lies on it.
At the end of Samsung have formed a working group of external consultants and experts from the academic and research community on issues of batteries. It is expected that this team will assist the vendor in “understanding the safety issues of batteries and innovative developments in this area.”
Samsung has promised to take measures to ensure that such a situation did not arise in the future.
Well lit
Galaxy Note 7 appeared on store shelves in South Korea on August 2 and August 19-became available to users in the United States, China, Australia and other countries. In Russia the official start of receipt of the devices in stores was postponed several times, but was never implemented.
the First reports of the fire appeared in the press almost immediately after receipt Galaxy Note 7 stores in first-wave countries. By the end of August, South Korean media have counted more than five cases of explosion of the battery device.
In the USA was recorded in one week, five incidents of fire this device. One of them Galaxy Note 7 caught fire on-Board the Southwest Airlines before departure. After that in the USA some airlines have begun to place on Board the aircraft, special containers in case of fire phones.
In most Samsung then spoke about the transfer of supply of the smartphone for an indefinite period in connection “with additional testing related to the quality of the product.”
In early September, the Financial Times wrote about the “global opinion” of the devices due to the more than 35 cases (17 in South Korea, 17 in the United States and one in Taiwan) fire batteries, fixed for September 1.
the Company then announced that all the sold devices (about 2.5 million) will be free of charge replaced by new one. The reports States that the cause of the sudden fire was a defective battery from lithium.
Samsung had to stop the production of the device, to curtail the sale and to withdraw the smartphones in those countries where they are officially sold.
the Owners of the Galaxy Note 7 had to return their smartphones. To do this, Samsung sent out a fireproof box with gloves and bag. The instructions included in the kit, it was stated that the contents of the box is prohibited to carry on Board the aircraft due to fire hazard.
Samsung has sent these kits to all the users who return the device with UPS delivery. Note 7 owners were asked to turn the phone off, put it in antistatic bag, which is removed first into a box and then in a special insulated.
In late September, Samsung launched an attempt to return the corrected version of the smartphone in stores in South Korea and other countries. However, the device of the new party, according to South Korea, continued to overheat.
the Blow to the wallet
because the revocation and the cessation of production of the smartphone Samsung Electronics shares October 11 fell by 9%. The company’s capitalization fell by $ 17 billion In January of 2017, the Daily Mail experts came to the conclusion that the loss of the South Korean Corporation due to the burning Galaxy Note 7 could be and did $ 19 billion.
Analysts have estimated that the vendor will incur a loss of $ 17 billion from discontinuing the Galaxy Note 7. If users will return all produced smartphones, the payment of compensation each make an average of $ 850. Thus, the damages Samsung will be about $ 2.2 billion.
the Failure had a strong influence not only on the financial position of Samsung, but also on the reputation of the brand. So, Galaxy Note 7 was in the list of the worst devices of 2016, according to Engadget.
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