Samsung — the world’s top maker of smartphones and ordinary mobile phones — will also offer new devices for those who have already bought the large-screen smartphone, its mobile chief said.
“We have received several reports of battery explosion on the Note 7 that was officially launched on August 19…and it has been confirmed that it was a battery cell problem,” Koh Dong-Jin told reporters.
Samsung has so far sold one million units of the Note 7 in countries including South Korea and the US.
So far 24 of them have been confirmed to have faulty batteries, Koh said, adding he was “deeply sorry” over the incident.
Since late last month, several users have posted photos and videos on social media showing the charred Note 7 with part of its 5.7-inch touchscreen burnt and melted, saying it suddenly caught fire.
Growing safety concerns over the Note 7 have forced Samsung to suspend its shipments at home and delay its planned release this month in several European countries including France.
Shipping delays
South Korea’s Yonhap News Agency reported separately that Samsung Electronics had pushed back the Note 7’s launch in key European markets such as Britain and France. Shipments to the United States appear to have halted as well, Yonhap said, without citing a direct source.
Samsung said in a statement it was “conducting a thorough inspection” with its partners on the Note 7 and would share its findings as soon as possible. The company did not immediately comment on Yonhap’s report.
Credit Suisse said a recall or major shipping delays could wipe 1.5 trillion won ($1.34 billion) off the firm’s 2016 operating profit estimate of 30.2 trillion won.
But the brokerage said this was the “absolute worst case” scenario and was unlikely to materialize, as it expected the firm to resolve issues with the phone before the fourth quarter.
Hyundai Securities also said in a report released on Thursday that the Galaxy Note 7’s problems should be resolved within a “few weeks”. The brokerage retained its third-quarter operating profit forecast of 8.5 trillion won.
The mobile division accounted for about 54 percent of Samsung Electronics’ January-June operating profit of 14.8 trillion won.