Samsung Electronics Co Ltd formally recalled 1 million Galaxy Note 7 phones sold in the United States
Samsung received 92 reports of batteries overheating in the United States, including 26 reports of burns and 55 cases of property damage, the company said as it announced the recall in cooperation with the U.S. Consumer Product Safety Commission (CPSC).
The electronics giant will be replacing or refunding the flagship phones, whose susceptibility to catching fire has damaged the image of the Korean powerhouse. The recall is a costly setback for Samsung, which was counting on Galaxy Note 7 to bolster sales as rivals such as Apple Inc launch new devices. The scale of the recall is unprecedented for Samsung, the world’s largest smartphone maker. Earlier this month, Samsung said it would recall all Note 7 smartphones equipped with batteries it found to be fire-prone and halted their sales in 10 markets, denting a revival of the firm’s mobile business.
Even though recalls are common in the smartphone industry the nature of the problem for the Note 7 is a serious blow to Samsung’s reputation, analysts have said. Some 2.5 million of the premium devices worldwide need to be recalled, Samsung said. Some analysts say the recall could cost Samsung nearly $5 billion in lost revenue this year.