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Samsung on Sept. 2 initiated a voluntary global recall of at
least 2.5 million Note 7 smartphones due to faulty batteries
causing some of the flagship devices to catch fire, a deeply
embarrassing crisis for a firm that prides itself for its
quality control. The recall could cost the company billions of
dollars and tarnish its brand image, analysts say.
The South Korean firm has said the Note 7 phones that were sold
starting on the official Sept. 1 launch date use a different
battery than the recalled devices. But a string of reports by
users in China, the world's top smartphone market, that their
Note 7s caught fire have dogged Samsung in a country where they
have already fallen out of the top five in terms of market
share.
Samsung, in a statement issued on its China website, apologised
to its consumers for failing to providing a detailed explanation
why the smartphones on sale in China were safe, as they used
batteries that came from a different supplier to those that
could overheat.
"Currently, the brand new Note 7 products that have been swapped
in overseas markets are using identical batteries to those that
were supplied and used for the Chinese version," Samsung said.
Samsung said it takes reports of Note 7 fires in China very
seriously and has conducted inspections on such devices.
Batteries for the burnt phones were not at fault, Samsung said,
adding its conclusion was also backed up by independent
third-party testing.
(Reporting by Paul Carsten and Beijing Newsroom, Se Young Lee in
SEOUL; Editing by Tom Hogue and Christian Schmollinger)
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