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Samsung phone fires not caused by batteries after all

JT | September 21, 2016

A supplier in China has reported that a joint probe pointed to “outside factors” as the cause of the Galaxy Note 7 problems.

The Samsung phone fires in the Galaxy Note 7 have made their way to China. Videos of the exploding mobile devices went viral last weekend. Some stores in the country pulled them from the shelves while some new owners sought to return them.

However, the South Korean electronics company released a statement following device test results.

So far, the Samsung phone fires don’t appear to be caused by faulty batteries, as had been suspected. At least, that is what the company has been saying following the results of tests conducted on the devices. At least one of the exploding Galaxy Note 7 phones was heated from the outside, not internally, said Samsung.

samsung-phone-fire-explosion The electronics giant has said that the small number of Galaxy Note 7 phones that were set aside for presale in China are not among those containing faulty batteries. There have been battery issues in versions of the device launched in other countries. The company is currently dealing with the recall of 2.5 million units in the United States and 9 other countries.

China is the largest smartphone market in the world, but it has not been impacted by the Samsung phone fires recall.

That said, it isn’t yet clear whether or not the statement from Samsung will be enough to assuage the concerns of consumers and merchants. The world has already watched the company cope with the massive recall of the first wave of fire-prone batteries in the smartphones. For a device that already retails for over $800, this could cause people – and stores – to think twice.

The widespread news of the exploding phones in China could be very problematic to the company, regardless of whether or not they are to blame. The fact that this is occurring in the largest phone market in the world must be causing some sweat to break out.

The tests were conducted by the battery supplier for the Chinese market phones, Amperex Technology Ltd. It conducted the tests jointly with Samsung using one of the devices that were part of the Samsung phone fires in China. The examination revealed that the battery hadn’t been the source of the problems.

Galaxy Note 7 recall could be damaging to Samsung suppliers

Rebecca | September 5, 2016

Reports of device batteries catching fire may harm the brand’s reputation but suppliers will feel the financial pinch.

Samsung Electronics has announced a massive Galaxy Note 7 recall following a growing number of reports of exploding batteries. The devices have been catching fire while they were recharging. This could mean Samsung’s reputation may take a hard hit. However, the brunt of the financial impact could end up being directed at the company’s suppliers.

Samsung’s response to the rechargeable battery problems with the Note 7 has been a rapid one.

When the Galaxy Note 7 recall was announced, Samsung said it would provide a free battery replacement or after/service. That said, it has decided not to offer customers a refund. This has been interpreted as a strategy to reduce the impact of the incident on the brand. It has also been seen as a rather inconvenient offer for the customer.

Galaxy Note 7 recall - Image of Samsung phone The Note 7’s official launch was on August 19 in Korea. Media there reported the sale of over 400,000 units within the country. J.P. Morgan has estimated that there will also be a delay in the shipment of up to two million units, assuming the recall affects all the devices that have been made.

The Galaxy Note 7 recall may also play a large role in deflating the current market response.

J.P. Morgan’s report said “This could also cool down heated market response, but we do not expect a material impact on sell-through in the next three to six months.”

That said, the analysts have recently reduced the level of their downside risk expectations. They have predicted that they might drop from the level maintained at present to approximately 13 million units during the third and fourth quarters of this year. The J.P. Morgan analysts explained “The company plans to correct the recall-related supply bottleneck within next couple of weeks and we expect a solid sell-in/sell-through trend from later part of this quarter.”

It’s important to point out that the incidents leading to the Galaxy Note 7 occurred only during the wired charging. The wireless charging feature has not been associated with the fires.