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| Samsung Galaxy Note 7 |
Samsung is recalling millions of new Galaxy Note 7 smartphones worldwide after reports of the devices catching 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 (AAPL, Tech30) is expected to show off its new smartphone next week.
Samsung (SSNLF)
said on Friday that it had found a problem with the battery in some of the
phones and was halting sales. In the coming weeks it will offer
customers a new product for free to replace all 2.5 million Galaxy Note
7s that have been sold.
It's unclear what owners of the phones
should do now. The company said it will take about two weeks to prepare
the recall, and the date new products will be available will vary by
country. People worried about their batteries should contact their
nearest Samsung service center, it added.
South Korean news
agency, Yonhap had previously reported that there have been five claims
around the world of Note 7s catching fire while charging. Unverified
photos posted on social media showed charred devices.
Samsung, a giant South Korean company, said it had been alerted to
35 claims of faulty phones worldwide. It said it had so far found 24
devices with problems for every million sold.
U.S. mobile
networks sell the Galaxy Note 7 for at least $850. 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 shares fell on Thursday on reports of problems with the Galaxy
Note 7 battery but closed 0.6 percent higher on Friday before the recall was
confirmed.
Samsung had the biggest share of the global
smartphone market in the three months to June 30, according to research
firm IDC. The South Korean company had 22 percent, ahead of Apple's 12 percent.
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.
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