Earlier this month, Samsung had to do the unthinkable for any commercial enterprise — ask their consumers to return their product because it was not safe — after several reports from Galaxy Note 7 owners that their phone was on fire. Not in the cool way; the rechargable lithium-ion battery was catching fire, exploding in some cases.
"Exploded Samsung Galaxy Note 7 phones" >https://t.co/qM2478XCbZ>#update>#feedly>pic.twitter.com/huRCDBTt3u
— ∙̣̣̣̇̇̇Prince Emma (@Ebuwas) >September 22, 2016
Samsung Note7 caused fire, again. >pic.twitter.com/TrwW2nrhrs
— cina™ (@YouTiup) >September 22, 2016
Embarrassing? Definitely. But also financially draining — the firm has reportedly incurred a loss of around $1 billion as a result of recalling/refunding/replacing the Note 7s over the past month. And then there is the damage to reputation.
Samsung's loss was Apple's gain. Just as Samsung announced a worldwide recall on September 2, the iPhone 7 was launched — the timing could not have been better for Apple. According to a poll conducted by CNET during the week after the worldwide recall was announced, nearly 49% of the 3,329 consumers polled said they would be switching over to an iPhone 7.
And just like that, what was going to be Samsung's trump card in the smartphone wars between the iPhone, Google Pixel and LG V20, ended up fizzling out like the embers of a singed Note 7.
According to Reuters, the firm's market share value dropped by as much as $7 billion. The Note 7 was expected to do 25% better than the Note 5 last year, but after 'Explosiongate', the firm has revised its estimates down to minus 60%.
Loving my new Galaxy Note 7. >pic.twitter.com/jmWgRDETXc
— GeekFeed.com (@GeekFeedDotCom) >September 21, 2016
“Some said initially the Galaxy Note 7 could be the best smartphone ever, but now it’s possible the phone will go down as the worst ever,” IBK Securities analyst Lee Seung-woo had said after the recall.
On Thursday, the South-Korean tech brand began issuing replacements of its Note 7 in the United States.
Samsung's Galaxy Note 7 replacements arrive in the U.S., but few people may actually want them: >https://t.co/ikmmkITwzt (Photo: epa) >pic.twitter.com/3Zvd5SjDIz
— USA TODAY (@USATODAY) >September 21, 2016
Samsung had opened up a window lasting till Monday, September 19, for South Korean users to claim a refund. Any returns after that date would only get a replacement piece as opposed to a refund. On Thursday, though, the South Korean government asked Samsung to extend the refund period.
Meanwhile, Samsung has had to battle with freeloaders on top of all the damage-control. At least 26 complaints and refund requests it received turned out to be hoaxes.
This came surprising because People shared others Note 7 Explosion photos & tried to claim a New Phone from Samsung. 26 Fake Reports :O >https://t.co/WlzRKFJYko
— Amit (@amitbhawani) >September 22, 2016
Still, it doesn't look like the batteries have truly been rid of their problem, as the model has just got a statutory warning up instead of a complete overhaul of the problem.
Samsung is now displaying this message every time you turn on or charge a Galaxy Note 7. Next step will be bricking the phone Unprecedented >pic.twitter.com/bbRssKF8EW
— Neil Cybart (@neilcybart) >September 21, 2016
What caused the Samsung batteries to explode?
According to Dr. Donald R. Sadoway, the John F. Elliott Professor of Materials Chemistry at the Massachusetts Institute of Technology, the Lithium-ion batteries have two electrodes — made of graphite and cobalt oxide — separated by a fluid lithium, which is a flammable organic substance, acting as electrolyte.
"... Now, somehow, during the manufacturing process, very tiny particles of metal had ended up in the electrolyte . . . under the action of electric current, these metal fragments aligned, and they eventually formed an unbroken chain of metal from one electrode to another. So then you’ve got the current shorting through this filamentary wire, if you will, so you’ve turned the inner electrode gap into a toaster oven. That causes all of the current to short, and generates a lot of heat, and that causes the electrolyte to bloat, and then the next thing you know, it explodes," Dr. Sadoway told Time .
"Ladies and gentlemen, if you have a Galaxy Note 7, the FAA forbids you from charging it, turning it on, just shut it off and put it away"
— Phil Letourneau (@philletourneau) >September 22, 2016
