Samsung has issued a major recall today. The electronics company has recalled its Galaxy Note 7 smartphones after learning that the batteries inside of the phones were fire prone. The company is, understandably, upset about this recall but felt that the recall was necessary to avoid fires from catching.
This recall impacts all Galaxy Note 7 phones. If you do have a Galaxy Note 7 phone, make sure to head to Samsung’s main page to see what you can do with your phone. Since the phones all have batteries that will catch on fire, Samsung does not have a replacement in mind quite yet. The company is working on a solution.
Samsung is worried that the recent recall will cause Note 7 sales to dip. The company has just released the phone in parts of Asia and in the US. Samsung has told press that the company will start to replace the bad batteries in approximately two weeks. After the batteries have been replaced, Samsung does plan to start selling the phones once again.
However, many consumers might be hesitant to purchase a phone after news of batteries catching on fire has spread. Right now, the company has been forced to issue a public statement, which means that many consumers have already read about the issue. Phones in various parts of the world have caught on fire causing consumers to think twice before purchasing a Note 7.
After news of the batteries spread yesterday, investors dropped massive amounts of Samsung shares causing the company’s value to dip. While Samsung is optimistic that fixing the issue and then moving onto sell more of the phones won’t be an issue, investors aren’t jumping to invest in the company again quite yet.
Samsung hasn’t said exactly how it will replace the batteries or fix the problem. But this is far from the first time that a cellphone company has had to replace batteries due to a fire hazard. There have been massive battery recalls by other phone companies in the past, so Samsung is just one in a long line of many.
Analysts estimate that the recall could wipe billions from Samsung’s operating profit, which is a major swipe at the company. Samsung has to manage to sell the phones again once the problem has been fixed. This means convincing the public that the phones are safe once the battery problem has been addressed.
Samsung’s mobile division is a massive part of the company’s profits right now. Just like other smartphone companies, though, Samsung has yet to entice consumers with a mind-blowing phone release. That fact coupled with the recent recall might mean difficult times ahead for the company. It will take a few weeks for the company to fix the battery issue.
Right now, it is advised that anyone with this phone return the phone to Samsung for fixing. As a whole, smartphone manufacturers are not selling a lot of phones these days. Problems like this one just add fuel to the fire.