New | Samsung recalls 191,000 Note 7 phones in China after 20 cases of overheating batteries reported
Samsung suffers potential brand damage as US carriers halt Galaxy Note 7 sales amid concerns about replacement units catching fire
Samsung Electronics Co. is recalling 191,000 of its Galaxy Note 7 smartphones in China, after reported cases of an overheating battery forced the world’s largest maker of Android phones to stop worldwide production and warn customers to switch off their devices.
As many as 20 cases of Note 7 batteries overheating or catching fire have been reported in China, the inspection administration said. The company will replace Note 7 customers with other Samsung brand phones, reimburse buyers with any price difference and present them with a gift voucher valued at 300 yuan (US$45), according to the statement.
The crisis couldn’t come at a worse time for Seoul-based company, which is facing competition by Apple’s new iPhone 7 model on one end, with China-made phones running on the Android operating system on the other. A global recall could cost Samsung US$630 million in foregone sales, analysts said.
Samsung’s shares plummeted as much as 8 per cent in Seoul to 1.545 million won, the biggest single day drop in at least three years.