{"id":13406,"date":"2016-10-11T04:33:22","date_gmt":"2016-10-11T04:33:22","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=13406"},"modified":"2016-10-11T04:33:22","modified_gmt":"2016-10-11T04:33:22","slug":"samsung-shaken-by-galaxy-note-7-woes","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/news\/samsung-shaken-by-galaxy-note-7-woes.html","title":{"rendered":"Samsung Shaken by Galaxy Note 7 Woes"},"content":{"rendered":"

Samsung Shaken by Galaxy Note 7 Woes<\/strong><\/span><\/h2>\n

Samsung Shaken by Galaxy Note 7 Woes:-<\/strong>\u00a0Samsung Electronics Co.\u2019s recall of one of its most advanced smartphones descended further into confusion, as the technology giant halted production and distribution of the Galaxy Note 7 while investigators probed recent reports of overheating batteries on devices that were supposed to be safe.<\/span><\/p>\n

The company late on Monday U.S. time said it was asking all telecom carriers and retailers that sell the Note 7 globally to stop sales and exchanges of the device pending investigation into the latest incidents. Major U.S. carriers already had made that move on their own.<\/span><\/p>\n

The Samsung announcement came after the company suspended production of the Note 7, a decision that raised questions about Samsung\u2019s initial diagnosis of the problem, which attributed overheating batteries in some Note 7s to manufacturing issues at one of its suppliers. Samsung said last month that it stopped using batteries from that supplier.<\/span><\/p>\n

The turn of events has shaken already-damaged confidence in the global recall of 2.5 million Note 7s that began more than a month ago, creating a headache for consumers, carriers and airlines worried that the smartphone\u2019s faulty batteries could cause smoke or fires in midflight.<\/span><\/p>\n

Verizon Communications Inc. Chief Executive Lowell McAdam on Monday said the recall was \u201ca major black eye\u201d for Samsung. \u201cThis is by far the biggest concern I have seen in cellphones during my tenure,\u201d said the CEO\u2014a veteran of the wireless business since the 1980s\u2014at an industry conference in Menlo Park, Calif. \u201cIn my however many years in the market I have not seen a recall like this,\u201d Mr. McAdam said.<\/span><\/p>\n

Samsung didn\u2019t immediately comment on Mr. McAdam\u2019s remarks. The company\u2019s statement Monday said \u201cWe remain committed to working diligently with appropriate regulatory authorities to take all necessary steps to resolve the situation.\u201d It said consumers with either an original or a replacement Note 7 should power down and stop using the device.<\/span><\/p>\n

Samsung\u2019s move Monday came after recent incidents in which owners reported problems with Note 7s that they said they had received as replacements as part of the recall. The U.S. Consumer Product Safety Commission was investigating a total of five such incidents, two in Kentucky and one each in Minnesota, Virginia and Texas. Authorities haven\u2019t confirmed that the incidents involve replacement versions of the Note 7.<\/span><\/p>\n

CPSC Chairman Elliot Kaye late Monday endorsed the decision by Samsung and the U.S. carriers to halt distribution of the Note 7, and urged existing owners to take advantage of remedies available, including a full refund. \u201cNo one should have to be concerned their phone will endanger them, their family or their property,\u201d he said.<\/span><\/p>\n

The muddled recall process has raised the prospect of lasting damage to Samsung\u2019s brand, which is competing for global market share with Apple Inc. and Huawei Technologies Co.<\/span><\/p>\n

Matthew Quint, director of the Center on Global Brand Leadership at Columbia Business School, said that consumers might have let the initial glitch slide. \u201cBut a second time, you\u2019re definitely going to see some long-term impact.\u201d<\/span><\/p>\n

Mr. McAdam said Verizon has seen some customers shift to competing products, but that he thinks Samsung will recover. \u201cThis is certainly helping Apple, but people aren\u2019t flocking away from Samsung,\u201d he said.<\/span><\/p>\n

Samsung initially stumbled in the U.S. by not coordinating its initial recall announcement with the CPSC, earning it a public rebuke from the agency\u2019s leader last month.<\/span><\/p>\n

The process seemed to have stabilized in recent weeks. Then on Friday, after reports of new incidents surfaced, major carriers said they had started to allow customers to get a second replacement for their Note 7s. On Sunday, Verizon, AT&T Inc. and T-Mobile US Inc. said they would stop issuing new Note 7s to replace those turned in by customers. Sprint Corp. followed suit on Monday.<\/span><\/p>\n

Some U.S. airlines held internal meetings Monday on providing additional guidance to passengers to prevent the use of their phones, but decided to stay for now with existing guidance barring passengers from using or charging Note 7s on flights. Carriers said they would follow any new guidance from regulators.<\/span><\/p>\n

The Federal Aviation Administration late Monday reaffirmed its guidance against using or charging Note 7s on flights, noting it applies to all Note 7 devices, including those that were replaced as a part of the recall.<\/span><\/p>\n

If authorities determine that replacement Note 7s do indeed have the same battery problems that originally prompted concern, it would cast doubt on the entire recall so far.<\/span><\/p>\n

\u201cTrust factor is a very important one in recalls, and it is undermined every time a mistake is made,\u201d said Pamela Gilbert, a partner with Washington law firm Cuneo Gilbert & LaDuca LLP and a former executive director of the CPSC.<\/span><\/p>\n

Samsung has attributed the battery problems to one of its battery suppliers. It hasn\u2019t named the supplier, but people familiar with the matter say it is Samsung SDI Co., an affiliate of the smartphone maker. Samsung SDI has declined to comment.<\/span><\/p>\n

Samsung said on Sept. 2 that it immediately would stop sourcing its Note 7 batteries from the supplier, diverting orders to Amperex Technology Ltd., a unit of Japanese electronic-parts maker TDK Corp.<\/span><\/p>\n

Source:-\u00a0http:\/\/www.wsj.com\/articles\/samsung-to-halt-galaxy-note-7-production-temporarily-1476064520<\/span><\/p>\n

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