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The world’s largest cellphone maker Samsung, announced that it will discontinue the explosion-prone Galaxy Note 7 after recent reports of the replacement phones also catching fire.
Before nearly 1 million 7’s were recalled in the U.S., 92 complaints were made and 26 people were injured. Since then, 3 people have been burnt by their replacement phones. As a result the South Korean electronics company announced that it will stop production and sales of the phone altogether.
“This is an unprecedented business event in technology because what is essentially happening is that we’re cancelling an entire generation of phones this has never happened with Apple or Blackberry.” Nick Bontis, Degroote School of Business.
About 22 000 Note 7’s were sold in Canada and Samsung is ordering all customers to turn off their phones. Retailers aren’t exchanging defective phones and customers will be able to receive all their money back. The recall could cost Samsung $2 billion, all while Apple’s iPhone 7 and 7 plus continue to fly off the shelves.
While some people might think this could be the end of Samsung, think again. They announced that profits will be up in the third quarter and this isn’t even the biggest electronic recall in recent history. In 2006, Dell recalled just over 4 million notebook computers after reports the lithium ion batteries that powered them could overheat and sometimes catch fire.
