EOUL, South Korea, Friday September 2, 2016 – Samsung is recalling millions of new Galaxy Note 7 smartphones worldwide after reports that the devices can catch fire while charging.
The massive recall of one of Samsung’s flagship devices is an embarrassing setback for the world’s biggest selling smartphone maker. The Note 7 was unveiled just a month ago, and big rival Apple is expected to show off its new smartphone next week.
Samsung said today it had found a problem with the battery in some of the phones and was halting sales in 10 countries, including South Korea and the US. It will offer customers a new product for free in the coming weeks to replace the 2.5 million Galaxy Note 7s that have been sold.
“As of September 1, there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market. However, because our customers’ safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note7,” it said in a statement today.
Samsung said devices in China don’t appear to be affected because it used another battery supplier. But it was unclear if models sold in China would nonetheless be recalled.
The giant South Korean company originally said it would take about two weeks to prepare the recall, but later announced Note 7 users in the U.S. can exchange their device for a Galaxy S7 or Galaxy S7 Edge, starting next week. It will also refund the cost of Note 7-specific accessories. Samsung is giving Note 7 users a $25 gift card or bill credit for the inconvenience.
More details about how the recall programme will work will be announced shortly, the company said. At a news conference, company executives declined to comment on exactly how much replacing all the devices would cost.
“It is a big amount that is heartbreaking,” said Koh Dong-jin, president of Samsung’s mobile communications business.
Samsung had the biggest share (22%) of the global smartphone market in the three-month period ending June 30, according to research firm IDC. By comparison, Apple held 12%.
Samsung benefited from the popularity of the Galaxy S7, IDC said, and the Galaxy Note 7 was expected to keep that momentum going into the second half of the year.
The phone was well received by reviewers, drawing attention for several unique features such as an iris scanner, which allows users to unlock the phone with their eyes.