Samsung's Galaxy Note 7
shipments delayed due to quality testing
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[August 31, 2016]
By Se Young Lee
SEOUL (Reuters) - Tech giant Samsung
Electronics Co Ltd said on Wednesday shipments of the Galaxy Note 7
smartphone are being delayed as the firm conducts additional quality
control testing for the premium device.
"Shipments of the Galaxy Note 7 are being delayed due to additional
tests being conducted for product quality," Samsung said in a
statement to Reuters. The firm did not elaborate on what it is
testing and to what markets shipments are being delayed.
Local media reports have said some users of the Galaxy Note 7, which
launched in South Korea and other markets earlier this month, have
claimed that the battery for their phones exploded.
Quality control problems, if confirmed, could deal a major blow to
the world's top smartphone maker as the firm is counting on the
sales of the new device to maintain sales momentum for the mobile
business in the second half of this year.
Samsung has previously said demand for the new Galaxy Note phone is
far exceeding demand, creating a supply shortage and forcing it to
push back the launch of the phone in some markets. The firm has said
it is utilizing all possible means to boost production.
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Production problems for the curved displays for the Galaxy S6 edge phone
resulted in disappointing sales last year, and some investors fear a repeat if
Samsung does not move quickly to meet Note 7 demand.
The Galaxy Note 7 retails in South Korea for 988,900 won ($887.63) without
subsidies.
Samsung's other premium smartphone models that launched in March, the Galaxy S7
and S7 edge, have been huge hits with customers and helped boost its earnings in
the first half of 2016.
(Reporting by Se Young Lee; Editing by Muralikumar Anantharaman)
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