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Samsung's Note 7 crisis will cost at least $2.34 billion
Do you know what's really bad for your business? Selling a smartphone with a tendency to explode in your customer's pockets. That's why Samsung has revised its quarterly profit guidance, suggesting that it'll lose out on $2.34 billion in the current three-month period. That loss is all down to the Note 7 and its propensity for self-immolation that has so baffled the company's engineers.
Samsung ships fire-proof boxes and gloves to recover Note 7s
If you purchased a Galaxy Note 7 from a US carrier or retailer, you can (and should) return it to a store immediately. If you bought the phone straight from Samsung, though, the process was a little trickier -- some customers complained early on about FedEx and UPS refusing to handle return units out of fears they would blow up. That's why Samsung has adopted an elaborate recall box that allows affected phones to be returned to the company via UPS Ground. It's... sort of a doozy.
Samsung's quarterly earnings weren't affected by the Note 7 recall
Samsung might spend as much as $1.8 billion recalling and replacing 2.5 million Galaxy Note 7s, but it still expects a 5.6 percent operating profit growth for the third quarter. According to the Korean chaebol, its profit will likely reach 7.8 trillion won ($7 billion) for July to September, up 400 billion won from the same period last year and 400 billion more than forecasts predicted. See, despite its Note 7 issues, the company's chip and display business has been doing very well -- it might even be this quarter's top earner, knocking Samsung's mobile division off its perch.
Replacement Note 7 starts smoking on Southwest flight (updated)
A Southwest flight was evacuated in Lousiville, Kentucky when a Samsung Galaxy Note 7 overheated and began smoking on board. Louisville Metro Arson investigators confirmed to WAVE News 3 that a Samsung device was the cause of the incident. All passengers and crew members exited the plane safely via the main cabin door and no injuries were reported. To make matters worse, the device was a replacement following the company's global recall of the handset over the last few weeks.
Galaxy Note 7 finally goes on sale in Europe on October 28th
Samsung's Galaxy Note 7 was originally set to go on sale in Europe on September 2nd, but on that very day the launch was pulled and a global recall issued on account of their tendency to explode without warning. This made the regional recall process a little simpler for Samsung, given only those who had taken advantage of early delivery preorder promotions had devices in hand, but it also meant Europeans have never actually been able to straight-up buy -- battery defects aside -- Samsung's finest smartphone yet. That changes October 28th, however, when the Note 7 will finally go on general sale in the region "subject to full completion of the exchange programme." Though whether consumer confidence has been irreparably damaged already remains to be seen.
Recalled Samsung Galaxy Note 7s can be charged to 80 percent (updated)
If you've failed to heed the warnings of Samsung and government regulators, it looks like you can now charge those recalled Note 7 batteries to 80 percent. The phones were recalled globally earlier this month following reports of exploding batteries, but the company issued an update that limited charges on the phone to 60 percent to avoid potential issues. That update only rolled out in Korea and didn't make it to the US.
Samsung already exchanged half of recalled Galaxy Note 7s
A lot of Note 7 owners don't have to sleep with one eye open anymore, according to Samsung's latest press release. The company says it has already exchanged half of the Galaxy Note 7s sold in the US that had been turned in through its voluntary recall program. Further, 90 percent of the people who went in for the recall apparently asked for replacement Note 7s, which were released on September 21st, instead of getting another model. Samsung made sure those replacement devices are safe, but if you want to know if you really got one that won't blow up, check its battery indicator. The safe Note 7s have green battery indicators, though you might have to download a software update to change its hue.
Samsung's Note 7 exploding battery 'fix' is a 60 percent limit
Samsung has a "quick fix" in the works for stubborn Galaxy Note 7 owners who don't want to return their devices, despite the global recall over batteries that might potentially explode. The company will roll out a software update on September 20th in South Korea that will limit the Note 7's battery to a 60 percent charge, which will hopefully prevent overheating, the AP reports.
Samsung loses $26 billion of market value after Note 7 recall
Samsung was having a great year, thanks to the S7 and S7 Edge, enticing investors to toss their money into the pool. Unfortunately, the rest of 2016 hasn't been going according to Samsung's forecast. The Korean chaebol has lost a whopping $26 billion (with a B) of its market value since it announced the Galaxy Note 7 recall, according to financial data provider Factset. Its shares apparently dropped 6.9 percent between the Korean Exchange's close on Friday (September 9th) and Monday, and its stock is currently priced at a bit above $1,300. That's the lowest it's been in months, although as you can see in the graph below the fold, the company has recovered a bit since yesterday.
Samsung reportedly gearing up to announce a Galaxy Note 7 recall (updated)
Samsung's Galaxy Note 7 debuted to almost surprising critical acclaim earlier this month, but since launch we've seen occasional reports of devices exploding while being charged. The company said yesterday that it delayed Note 7 shipments while it looked into the situation, but a report from Korea's Yonhap News Agency suggests Samsung knows what's going on and is prepared to announce a widespread recall. Update: It's official. Samsung has pulled the Galaxy Note 7 off of shelves and says it's preparing replacements, with a plan to begin the recall in about two weeks.
Samsung Galaxy Note 7 review
Note: On September 2nd, 2016, Samsung issued a global recall for the Galaxy Note 7 following several dozen reports of exploding batteries. Then, on October 10th, the company permanently discontinued the device after reports that replacement units were also exploding. Though this review is still live on Engadget's site for posterity's sake, we have elected to remove the original score. Needless to say too, even if the Note 7 were still being sold we would no longer be able to recommend it.
