Samsung has delayed shipments of its latest flagship smartphone, the Galaxy Note 7, as it conducts additional quality control testing. Shares of Samsung closed down 2% Thursday on South Korea’s KOSPI, causing a decline of about $4 billion in the company’s market value. Apple is scheduled to announce its new flagship smartphone for 2016 at a dedicated launch event in San Fransisco on September 7, directly competing with current market leader Samsung. Consumers won’t be offered a refund or a brand new phone, Chosun Ilbo said, but Note 7 users will be able to visit service centers nearby and will be offered the new parts for free.
A company official said the delay was caused by additional quality evaluation tests.
Samsung SDI, the battery-making unit of Samsung Group, produces the battery cell for the Note phone, while outsourcing the pack production to its suppliers.
If the exploding battery is confirmed to be true, it could be a massive blow for the tech giant, with Samsung relying on the sales of the device to maintain momentum in the second half of this year. Samsung hasn’t mentioned which countries will be affected by delayed shipments, and the company will surely make an announcement when the matter is resolved.
It’s unknown at this time whether these exploding batteries are a model-wide issue or an isolated case. This comes as a shocker to avid Galaxy fans as the device was touted to be the iPhone 7 killer, given its impressive specifications.
The new Note 7 includes a 5.7inch curved display, updated S Pen stylus and iris scanner which unlocks the phone with the power of your eyes.
Samsung has previously said demand for the new Galaxy Note phone is far exceeding supply, forcing it to push back the launch date in some markets.
Last week a Galaxy Note 7 owner posted pictures of the device after it exploded while charging.
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While that doesn’t offer much, we at least know something is going on.