Samsung Temporarily Halts Note 7 Production

South Korea’s Yonhap news agency reported Monday that Samsung Electronics has temporarily stopped production of its Galaxy Note 7 smartphones. The company suspended production following reports of overheating of the replacements for the fire-prone phones.

Yonhap said Samsung took the exceptional measure for the sake of consumer safety, quoting an unnamed official at one of the electronic giant’s supplier.

The effort follows pronouncements by US carriers T-Mobile and AT&T to halt the distribution of new Note 7 smartphones to customers to exchange erstwhile models while replacement devices are being investigated.

Samsung did not respond to requests for confirmation on the news agency’s report.

The Note 7 recall is Samsung’s biggest crisis in years and is the company’s first and only smartphone recall to date.

Samsung pronounced on September 2 a global recall of 2.5 million Note 7s because of the phones catching fire due to defective batteries. However, similar problems occurred when a replacement Note 7 began smoking inside a Southwest Airline flight in the US on October 5.

The device was a Galaxy Note 7 picked up by passenger Bryan Green from an accredited AT&T store on September 21 as a replacement for his old Note 7 that he returned when the global recall was announced.

Airport officials and major airlines advised passengers not to use the phone on board.

Singapore Airlines banned the charging and powering up of Note 7 phones on all its flights.

Hong Kong International Airport also strongly advised passengers not to put the phones in checked baggage and to stop using or charging Note 7s on aircraft.

AT&T Inc announced that it would discontinue dispensing replacement Note 7s as Mobile carriers also took action on Monday. It would instead let customers with a recalled Note 7 swap their device for another Samsung smartphone model or any other smartphone of their choice.

Replacement and sales of Note 7 discontinued

While Samsung is investigating “multiple reports of issues” with its top-of-the-line device, T-Mobile US Inc said it was temporarily suspending replacement and sales of new Note 7s.

In addition, the no. 3 wireless carrier offered their customers who brought in their Note 7s a $25 credit on their phone bill.

Meanwhile, Telstra Corp, Australia’s largest carrier, said that Samsung had halted the supply of new Note7s, while fellow Australian carriers Vodafone and Optus acknowledged that they had stopped distributing new Note 7s.

Samsung said it was investigating reports of “heat damage issues” and would act immediately to remedy any problems in accordance with measures accepted by the US Consumer Product Safety Commission.

The Consumer Product Safety Commission had no further information on Friday as it is still investigating the incident.

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Samsung Note 7 Replacement Catches Fire on Plane

Southwest Airlines evacuated their passengers before takeoff on Wednesday. The flight is from Louisville, Kentucky, to Baltimore, Maryland. A Samsung Note 7, considered safe by the South Korean company, caught fire and caused the emergency.

Fortunately, the airline company was keen on their protocols. Spokesperson of Southwest Airlines told BBC, “A customer reported smoke emitting from an electronic device. All customers and crew deplaned safely via the main cabin door.”

Earlier on September, Samsung Electronics imposed mandatory recalls for the Note 7 to resolve battery issues. Apparently, the handsets are vulnerable to overheating.

Samsung is still looking on the cause of the fire. A spokesman from the company said, “We are working with the authorities and Southwest now to recover the device and confirm the cause. Once we have examined the device we will have more information to share”.

Brian Green, the owner of the phone confirmed he bought the Note 7 on September 21. He said on the phone interview with Jordan Golson from The Verge.

Samsung distinguishes their newly released Note 7 with a black square icon outside the device’s packaging. Green purchased one of these handsets which Samsung deemed to be safe for the consumers.

The company guaranteed their consumers on the safety of the products when they recalled the handsets. Now, post -replacement, Samsung’s safety officials said the devices are safe from the overheating issues. However, they were still receiving reports about the issue.

According to Samsung’s spokesperson, “There have been a few reports about the battery charging levels and we would like to reassure everyone that the issue does not pose a safety concern,”

Turned-off and not charging

According to The Verge, Green’s Note 7 was turned off and not even charging when it overheated in his pocket. He then tossed the device to the plane’s floor where it started to emit thick grey-green angry smoke.”

The US Federal Aviation Administration (FAA) issued flight guidelines regarding Note 7. FAA warning indicates that all Note 7 should be turned-off for the duration of the flight. They also advised the public against placing it into check in luggage.

FAA has not given any statements if they will release additional guidelines on the latest incident.

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Samsung: Will The Brand Still Be Viable?

Galaxy Note 7s are back on the shelves. Samsung will resume selling Galaxy Note 7 smartphones to consumers in South Korea after the product recall. The company is bound to sell Note 7 in Europe come October 28.

Samsung asked their customers to return the Note 7 after reports of batteries igniting during or after charging. The company said it was due to faulty batteries.

Overall, Samsung sold about 2.5 million Galaxy Note 7 handsets worldwide before recalling the product. A total of 80% handsets sold in Korea had been replaced or returned.

Similarly, in Europe and North America, the figure is lower but still not less than 50%, according to Samsung.

A company source said 95% of the customers returning their handsets still choses to continue with Samsung. One big factor to it is customer loyalty.

Incalculable losses

But the cost must be huge. So massive that to quantify it in monetary terms simply cannot be done. Partly because Samsung’s efforts and carefully planned sales pitch was now futile against its rival. The “disaster” granted the iPhone 7 a month’s head start.

On top of that, Samsung promises its customers quality products. It pitches itself on producing most of its components, hence the company does less outsourcing than their competitors. With the product recall, even the branding of their own as quality products might sound dodgy to customers.

Furthermore, the company replaced most of the affected units but a vast number of handsets are still out.

Finally, Samsung Note 7 and airlines do not go hand-in-hand these days. Airlines recently released a warning for passengers with Note 7. The handsets cannot be checked in. They should remain “off” for the flights entirety.

 

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