1. donm527's Avatar
    So Samsung was the manufacturer of the batteries in question in the Note 7 while the Chinese supplier only supplied the chinese unit SOLD IN CHINA. So that's why the talk of the Chinese unit being unaffected eh? The ones sold in China. But a total recall... do deflect attention on naming the company who made the battery... Samsung??

    Samsung’s Massive Galaxy Note 7 Recall Brings Battery-Maker Into Focus - WSJ

    The next thing I want to know is who is responsible for the forming of the darn brittle corners on the GG5 and who oversaw the QC??

    -The Cracked Screen Evangelist

    By Eun-Young Jeong
    Sept. 5, 2016 9:29 a.m. ET

    SEOUL— Samsung Electronics Co. ’s global recall of its newest smartphone after some of the devices caught fire has put a spotlight on the technology giant’s battery-making affiliate.

    Samsung SDI Co. said Monday it was a supplier of batteries used in Galaxy Note 7 phones, which the world’s biggest smartphone maker pulled from shelves in one of the smartphone industry’s biggest recalls, announced Friday.

    Samsung SDI declined to comment on its role or the impact of the recall on its business.

    Samsung Electronics also relies on another supplier, Hong Kong-based Amperex Technology Ltd., a unit of Japanese electronic parts maker TDK Corp. An Amperex official said Monday it only supplied batteries for Galaxy Note 7 phones sold in China. Samsung Electronics went ahead with the launch of the new phones in China on Sept. 1 even as it carried out additional quality tests in South Korea in response to reports of some devices catching fire while charging.

    Roughly 65% of the batteries for the new smartphone were supplied by Samsung SDI, while 35% were made by Amperex Technology, Nomura analyst Chris Chang estimated.

    Shares in Samsung SDI continued to decline Monday following news of the recall. On Monday its shares fell 2.8% to close at KRW 105,500. Samsung Electronics shares closed up 0.6%.
    Read More on the Recall

    Samsung Electronics is recalling about 2.5 million Galaxy Note 7 devices, in a massive recall that analysts predict could cost the company about KRW 1 trillion ($904 million). Samsung Electronics declined to put an estimate on the financial impact of the recall. The company said it may seek a third supplier beyond the two companies it relies on for lithium-ion battery supply. The recall comes as rival Apple Inc. is slated to launch a new iPhone later this week.

    Samsung SDI was listed as an Apple supplier in the U.S. company’s suppliers’ list for 2016. Samsung SDI declined to comment when asked whether it currently supplies batteries to Apple and an Apple spokeswoman couldn’t immediately be reached for comment.

    Samsung makes smartphone battery cells in Cheonan, South Korea and Tianjin, China, but packages them in the company’s Vietnam factory and through a Chinese branch of South Korea-based ITM Semiconductor Co. Ltd.

    Samsung SDI began manufacturing lithium-ion rechargeable batteries in 2000 and is currently one of the world’s biggest manufacturers by market share.

    Samsung Electronics’ handset division chief Koh Dong-jin told reporters on Friday that the reported explosions in its Galaxy Note 7 devices were caused by a flaw in the battery cell and had nothing to do with the phone itself. Samsung, like many other handset makers, uses lithium-ion batteries in its smartphones due to their light weight and long-lasting power. Lithium-ion batteries, also commonly used in laptops and even airplanes, are comprised of power generating components called cells.

    In the Galaxy Note 7, a flaw in the battery cell resulted in negative and positive electrodes coming together which is abnormal, Mr. Koh said.

    “There was a minor flaw in the battery manufacturing process,”said Mr. Koh, adding that “the quality control standards in the production process may have been insufficient.”

    Problems in compatibility of the phone’s battery and chip could have also played a role when charging the battery quickly, a person familiar with the situation said.

    Analysts said that the trend of fast-charging smartphones may have contributed to the Galaxy Note 7 conflagrations. China’s Oppo became the fastest-growing major smartphone brand this year in part due to a major advertising push in which it touted, “Charge your phone for five minutes, talk for two hours.”

    Other major brands, including Samsung have been shifting to rapid-charge handsets, but they increase the chance of battery problems due to the high charge voltage, analysts said.

    The recall could hit Samsung’s operating profit in the second half of the year, a crucial selling season spanning the back-to-school and Christmas holiday when earnings are traditionally the strongest for technology companies.

    C.W. Chung, an analyst at Nomura, expects Samsung’s operating profit to take a hit by KRW 1 trillion in the third and fourth quarters combined. Mr. Chung estimates the recall cost alone to be around KRW 400 billion.

    Samsung lost a great window of opportunity to boost its momentum before Apple’s new smartphone release, said Peter Yu, an analyst at BNP Paribas.

    “But it won’t ultimately hurt Samsung. The company may sell a few million less phones, but it didn’t lose its brand image from the global recall, and that’s what matters in the long run, “ said Mr. Yu.

    In July, Samsung reported its most profitable quarter in nearly two years as strong sales of the smaller flagship Galaxy S7 helped boost sales and lift margins.

    —Juro Osawa in Hong Kong, Eva Dou in Beijing and Takashi Mochizuki in Tokyo contributed to this article.
    09-05-2016 06:23 PM
  2. dsignori's Avatar
    I saw this as well. Interesting.

    p.s. I love that you went with it "-The Cracked Screen Evangelist"
    09-05-2016 06:27 PM

Similar Threads

  1. Replies: 0
    Last Post: 09-05-2016, 06:18 PM
  2. Replies: 0
    Last Post: 09-05-2016, 05:59 PM
  3. Replies: 1
    Last Post: 09-05-2016, 05:50 PM
  4. Replies: 0
    Last Post: 09-05-2016, 05:19 PM
  5. Replies: 0
    Last Post: 09-05-2016, 04:51 PM