Samsung blames two bad batteries for Galaxy Note 7 fires and multibillion-dollar recalls
SAMSUNG has finally worked out why so many of its Galaxy 7 smartphones caught fire, and it’s promised not to let it happen again.
THE world’s largest smartphone maker has blamed not one but two poorly made batteries for a series of fires across the world and two unprecedented recalls costing billions of dollars.
Samsung revealed the findings of its Galaxy Note 7 investigation at a worldwide press conference today, which mobile communications business president DJ Koh started by “deeply” apologising to customers for the global failure.
The Samsung Galaxy Note 7 smartphone was launched on August 19 only to be recalled two weeks later after many of the devices caught fire, including one that damaged a Melbourne hotel room and another that allegedly caught fire on a plane, causing its evacuation.
Mr Koh said Samsung hired three external firms to investigate why the smartphones were catching fire, in addition to setting up its own laboratory to test 200,000 devices and 30,000 batteries.
The company, he said, tested all aspects of the smartphone, including its fast-charging battery system, software, water-resistance, and even its iris scanner.
“We believe that as a first step to regain your trust it is important to provide you with a thorough understanding of the cause behind the Galaxy Note 7 incidents and to implement a comprehensive plan to take preventive measures,” he said.
But Mr Koh said the batteries inside the phone, provided by two different manufacturers, were found to have caused the fires.
One group of Samsung Galaxy Note 7 batteries short-circuited and overheated in one corner, and the other overheated in the centre of the battery, he said.
UL consumer business unit president Sajeev Jesudas said the tech-testing firm found “internal short circuits” in the batteries, in addition to design, “assembly and manufacturing” issues.
Poor battery alignment, missing insulation tape, and sharp welding joins also contributed to the overheating problems, he said.
Mr Koh admitted the company had sought to include a “much larger battery of 3500mah in a more compact form compared to previous Note models,” and it needed to shoulder ultimate responsibility for the phone’s failure.
”Nonetheless, we provided the target for the battery specifications for the innovative Note 7 and as you will see we are taking responsibility for our failure to ultimately identify and verify the issues arising out of battery design and manufacturing process prior to the launch of the Note 7.”
Mr Koh said the company had since established a battery advisory group and would X-ray, test and disassemble batteries at random before releasing future smartphones.
Samsung previously estimated the “direct cost” of Galaxy Note 7 failure would be $3.9 billion over six months following the recalls, though the embarrassing gaffe has also affected its sales and could affect future smartphone sales.
The company suffered its biggest ever sales drop following the recalls, research firm Gartner found, with sales down more than 14 per cent on the previous year.
The company sold 11.8 million fewer smartphones in the third quarter of 2016 compared to 2015, Gartner research director Anshul Gupta said, putting a dent in its profits and boosting the sales of other companies such as Huawei and Oppo.
“The decision to withdraw the Galaxy Note 7 was correct but the damage to Samsung’s brand will make it harder for the company to increase its smartphone sales in the short term,” he said.
“For Samsung, it’s crucial that the Galaxy S8 launches successfully so that partners and customers retain trust in the brand.”
Comparison site Finder.com.au also reported fewer Australians intended to buy a Samsung phone following the issue, with “brand intent” down by a third.
While Samsung claimed 32 per cent of smartphone comparisons prior to the first fires, it dropped to 23 per cent after the recall, and was down to just 19 per cent last month.
Originally published as Samsung blames two bad batteries for Galaxy Note 7 fires and multibillion-dollar recalls
