Roughly Half Of All Defective Galaxy Note 7 Phones Already Exchanged In U.S.
Samsung opened itself up to criticism over the way it initially tried to handle a global recall of millions of Galaxy Note 7 devices on its own and it caught some heat as a result, but in giving credit where credit is due, the South Korean handset maker deserves praise for bouncing back and making quick work out of exchanging defective handsets for working models that aren't prone to exploding. That's underscored by Samsung now having replaced half a million recalled handsets in the U.S.
"Samsung Electronics America, Inc. announced today that about half of all recalled Galaxy Note 7 phones sold in the U.S. have been exchanged through Samsung’s voluntary recall. Additionally, 90 percent of Galaxy Note7 owners have been opting to receive the new Galaxy Note 7 since the phones became widely available on Wednesday, September 21," Samsung said in a statement.
Though an otherwise fantastic device, several reports of the Galaxy Note 7 overheating and catching fire due to defective battery packs prompted Samsung to recall the handset. After trying to handle things on its own, Samsung worked with the U.S. Consumer Product Safety Commission (CPSC) to formally recall 1 million Galaxy Note 7 smartphones stateside last week. At the time, Samsung said it had received 92 reports of batteries overheating in the U.S., including 26 reports of burns and 55 incidents involving property damage, among them fires in cars and a garage.
In the short time that's elapsed since then, wireless carriers including Sprint and Verizon have begun selling a new batch of Galaxy Note 7 handsets that sport new battery packs and managed to replace half of all recalled models in the U.S. That's the type of swift response that could help Samsung rebuild consumer confidence, both in itself and in its newest smartphone.
The financial fallout resulting from the recall is yet to be determined. It was previously estimated that Samsung could lose up to $1 billion in operating profit in the second half of its fiscal year, and knee-jerk reactions by investors sent Samsung's stock on a downward spiral, causing the company's market capitalization to tank by $22 billion. But Samsung's swift response over the past week could help mitigate the damage. It's also a good sign that 9 out of 10 Galaxy Note 7 owners in the U.S. have opted to receive a replacement instead of exchanging it for a different model or asking for a refund.
"Samsung Electronics America, Inc. announced today that about half of all recalled Galaxy Note 7 phones sold in the U.S. have been exchanged through Samsung’s voluntary recall. Additionally, 90 percent of Galaxy Note7 owners have been opting to receive the new Galaxy Note 7 since the phones became widely available on Wednesday, September 21," Samsung said in a statement.
Though an otherwise fantastic device, several reports of the Galaxy Note 7 overheating and catching fire due to defective battery packs prompted Samsung to recall the handset. After trying to handle things on its own, Samsung worked with the U.S. Consumer Product Safety Commission (CPSC) to formally recall 1 million Galaxy Note 7 smartphones stateside last week. At the time, Samsung said it had received 92 reports of batteries overheating in the U.S., including 26 reports of burns and 55 incidents involving property damage, among them fires in cars and a garage.
In the short time that's elapsed since then, wireless carriers including Sprint and Verizon have begun selling a new batch of Galaxy Note 7 handsets that sport new battery packs and managed to replace half of all recalled models in the U.S. That's the type of swift response that could help Samsung rebuild consumer confidence, both in itself and in its newest smartphone.
The financial fallout resulting from the recall is yet to be determined. It was previously estimated that Samsung could lose up to $1 billion in operating profit in the second half of its fiscal year, and knee-jerk reactions by investors sent Samsung's stock on a downward spiral, causing the company's market capitalization to tank by $22 billion. But Samsung's swift response over the past week could help mitigate the damage. It's also a good sign that 9 out of 10 Galaxy Note 7 owners in the U.S. have opted to receive a replacement instead of exchanging it for a different model or asking for a refund.
