It was reportedly last week that Samsung had to recall a major stock of the Galaxy Note 7, its latest flagship device after it came to the fore that the battery on the device was exploding. This lead to the launch of the device in states like India to be delayed and those who had pre-booked the phone had to be notified for the delay. This was a major setback for Samsung as this delay in launch would mean a lot of traction that was going well for Samsung given the buzz of the Note 7 will take a hit thanks to the iPhone 7 launch that is expected on September 7th.
With new iPhone just around the corner, it made sense for Samsung to get their product out in the market earlier so that the timing would not coincide, but that has not happened. Samsung promised to work on a solution for the problem and apparently, the solution has been found. If this report in Korea Herald is to go by, Samsung found the issue of exploding batteries with batteries manufactured by Samsung SDI, which is the subsidiary unit of Samsung itself. SDI began manufacturing non-removable batteries back in 2014. SDI is said to have supplied almost 70% batteries for the Note 7 lineup.
This is the first time that SDI has supplied batteries on such a large scale as only a very small percentage of batteries used in the Galaxy S6 and S6 Edge were supplied by them. The other 30% of batteries on the Note 7 came from a Chinese manufacturer, ATL. It has been reported now, that Samsung would source in more batteries from ATL and up the production of new Note 7 devices with them. The effects of this move are already been felt on the stock exchanges with SDI losing 2.76 percent as compared to the previous trading day. It has been estimated that Samsung has had to spend up to 1.5 trillion won in recalling the 2.5 million units of the Note 7.
Source: Korea Herald