Samsung offers exchange, full refund for Note 7 in Philippines

MANILA - Samsung Philippines on Wednesday urged Galaxy Note 7 owners in the Philippines to power down their devices and exchange them for a different model or get a full refund.

The South Korean electronics giant has halted production of the flagship smartphone after replacement units that followed a global recall were found to overheat and catch fire like the original models.

If customers opt to get the S7 Edge, Samsung said it would reimburse the price difference with the more expensive Note 7.

Samsung advised customers to transact in the store where they bought their phones.

Note 7 owners can also contact Samsung customer care at +63 (2) 422-2111 or visit their website at http://www.samsung.com/ph/note7exchange.

source: www.abs-cbnnews.com

Samsung Note 7 stumble opens opportunity for Apple, Huawei

PARIS - Smartphone customers losing faith in Samsung have plenty of choice at a time when Apple, Google and China's Huawei are each pushing new models that up the features ante and do not self-combust.

"All of Samsung's competitors are rubbing their hands in glee," said Thomas Husson, an analyst with the Forrester technology research and consultancy firm.

"It's basically a good product, released at the right time, but a slip-up, and we've seen in the past with Nokia or Blackberry that these can have disastrous effects," he added.

While it is too early to predict a similar disappearance from the phone market of the South Korean company, rivals are nipping at the heels of the market leader.

These include not only Apple and Chinese companies like Huawei, but also internet titan Google, which entered the smartphone market last week with its own device -- the Pixel.

"There will inevitably be some moderate-to-marginal benefit for Samsung’s handset rivals, more particularly Apple, perhaps faster-growing Huawei can benefit more from Samsung’s Note 7 travails," said analyst Ken Odeluga at the online trading firm City Index.

APPLE AND HUAWEI

However Ian Fogg, senior director and head of the mobile and telecoms team at the IHS technology consultancy, said that "Huawei will be the biggest beneficiary from brand damage to Samsung."

One of the largest providers of network infrastructure globally, Huawei has been pushing into the smartphone market, including the top-end segment with its P9 model that features a camera with two Leica lenses.

"Huawei will look to pick up sales right across its portfolio," said Fogg, noting that Huawei was already the third-largest smartphone maker.

"Like Samsung, it uses Android and offers smartphones at a wide range of prices."

The blow to Samsung is unlikely to be fatal, however.

"Competitors might enjoy a short-term boost to sales as a result of a major player having to withdraw its new model, though overall it is likely to remain a competitive market," said Laith Khalaf, an analyst at Hargreaves Lansdown brokerage.

Part of the reason is that its competitors have their own challenges to surmount.

Huawei, for instance, still needs to build its brand in Europe and North America.

Meanwhile Apple needs to recapture the excitement around its products that has disappeared in recent years.

TIP OF THE ICEBERG?

Thomas Husson at Forrester believes "it is too early to say what the long-term impact will be" from this incident, although the recall is likely to set it back a considerable amount.

Linda Sui, wireless smartphone strategies director at Strategy Analytics, estimated that Samsung could lose "$10 billion or more" over the recall.

"The loss of sales from the Galaxy Note is only the tip of the iceberg," warned CMCMarkets analyst Jasper Lawler.

"Demand for the flagship Galaxy S8, scheduled for release early next year, could be severely impeded by the loss of consumer confidence in the Samsung brand."

But City Index's Ken Odeluga said that "nobody wants to believe Samsung has ‘lost its touch’ at producing beautiful and advanced consumer technology."

"So there is some underlying sentiment that views its problems as the kind of bad luck which could afflict almost any smartphone maker that is pushing boundaries."

But ManMohan Sodhi, a professor of operations and supply chain management at Cass Business School in London believes that it wasn't bad luck as much as bad judgement.

"They should have figured out the product but with Google coming out with the Pixel, they did not give it enough time," said Sodhi.

While Google has developed the Android operating system that powers the smartphones made by Samsung and other manufacturers, except for Apple, it has generally stayed on the sidelines when it comes to handsets.

The release of the Pixel, along with its Google Home virtual assistant, indicates that Google aims to get its artificial intelligence technology into the hands and homes of consumers.

source: www.abs-cbnnews.com

Samsung halts sale and exchange of Note 7

SEOUL - Samsung Electronics on Tuesday called a worldwide halt to the sale and exchange of its Galaxy Note 7 smartphone, citing continued safety concerns, and advised all customers to stop using the device immediately.

The dramatic warning came in a written statement issued a little over a month after the world's largest smartphone maker announced a global recall of 2.5 million Note 7s in 10 markets following complaints that its lithium-ion battery exploded while charging.

The unprecedented recall was a major PR blow for the South Korean conglomerate which prides itself on innovation and quality, and the situation only worsened when reports emerged a week ago of replacement phones also catching fire.

Tuesday's statement was the first formal acknowledgement of continued safety concerns and came a day after Samsung acknowledged it was easing production of the flagship smartphone.

"Because consumers' safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note 7 while an investigation is taking place," the statement said.

Analysts noted that the move came a little late given that a number of major distributors -- US telecom firm AT&T and German rival T-Mobile -- unilaterally announced a halt to sales and exchanges of the model on Sunday.

Samsung said its investigation of the "recently reported cases" involving the Note 7 was being carried out in cooperation with the relevant regulatory bodies in those markets where the recall was ordered.

In the meantime, the company advised any consumer with an original or replacement Galaxy Note 7 to "power down and stop using the device" immediately.

Analysts have suggested that Samsung, battling ever-fiercer competition in the saturated smartphone market, may have rushed production of the Note 7 with bitter rival Apple's recently released iPhone 7 in mind.

The top-of-the-line Note 7 was crucial to Samsung's growth plans this year, with the company struggling to boost sales, squeezed by Apple in the high-end sector and Chinese rivals in the low-end market, as profit has stagnated.

The trouble with the Note 7 and the handling of the recall, which analysts say could cost up to $2.0 billion, has shone a spotlight on Samsung's management at a time when it is navigating a tricky generational power transfer within its founding Lee family.

Industry experts have criticised the Lee dynasty for controlling the vast group through a complex web of cross-shareholdings, even though they directly own only about five percent of total stocks.

And Samsung is also under pressure from one of its shareholders, the activist US hedge fund Elliott Management run by billionaire Paul Singer.

In a detailed proposal unveiled last week, Elliott laid out a strategy for streamlining Samsung, splitting the company in two, dual-listing the resulting operating company on a US exchange and paying shareholders a special dividend of 30 trillion won ($27 billion).

Elliott argued that Samsung, currently a maze of listed and unlisted companies with a notoriously opaque ownership and management structure, had suffered from a long-term undervaluation in the equity market.

Despite all its problems, Samsung on Friday issued a stronger-than-expected operating profit forecast for the third quarter, thanks largely to strong sales of memory chips and OLED display panels.

source: www.abs-cbnnews.com

Samsung recall crisis deepens; Yonhap reports Note 7 production halt

SEOUL, Oct 10 (Reuters) - Samsung Electronics Co Ltd has suspended production of its Galaxy Note 7 smartphones following reports of fires in replacement devices, South Korean media said on Monday, a further setback for the tech giant trying to manage its worst ever phone recall crisis.



Samsung's decision to temporarily halt Note 7 production was done in cooperation with authorities in China and the United States, as two U.S. carriers have stopped exchanging or selling new Note 7 phones, Yonhap News Agency cited an unnamed source at a Samsung partner firm as saying.

Samsung did not immediately comment on the Yonhap report.

Problems with replacements for the Note 7 model would create a new and potentially costly chapter to a global scandal which has hurt the reputation of the world's biggest smartphone maker. It also could add new dangers for consumers.

AT&T Inc, the No.2 U.S. wireless carrier, said on Sunday it will stop exchanging new Note 7 smartphones due to reports of fires from replacement devices that Samsung has said used safe batteries.

No.3 wireless carrier T-Mobile US Inc said it was temporarily halting sales of new Note 7s as well as exchanges while Samsung investigated "multiple reports of issues" with its flagship device.

T-Mobile offered customers who brought in their Note 7s a $25 credit on their phone bill.

Samsung announced on Sept. 2 a global recall of 2.5 million Note 7s in 10 markets including the United States due to faulty batteries causing some of the phones to catch fire.

A Southwest Airline flight was evacuated earlier this week after a replacement model Note 7 smartphone began smoking inside the plane, according to the family who owns the phone.

Samsung earlier said it was investigating reports of "heat damage issues" and would share its findings when the investigation is complete.

"If we determine a product safety issue exists, Samsung will take immediate steps approved by the CPSC (U.S. Consumer Product Safety Commission) to resolve the situation," Samsung told Reuters in a statement.

Samsung shares were down 3.3 percent as of 0125 GMT, compared with a 0.1 percent fall for the broader market.

"I thought the Note 7 matter was coming to an end, but it's becoming an issue again," Alpha Asset Management fund manager CJ Heo said.

Samsung should be able to recover from the short-term reputational damage of the recalls, but fourth-quarter sales of the Note 7 would be hurt, he added.

South Korea's largest mobile carrier, SK Telecom , said it was closely monitoring the situation and would not comment further. KT Corp, the No.2 South Korean carrier, said it had taken no steps in regards to sales or exchange of new Note 7s.

(Additional reporting by Parikshit Mishra in Bengaluru and Nataly Pak in Seoul. Writing by Lincoln Feast; Editing by Miyoung Kim; and Stephen Coates)

source: www.abs-cbnnews.com

Samsung eyes fix after complaints of 'exploding' washers

WASHINGTON - Samsung is in discussions about "potential safety issues" concerning some of its washing machines after a class-action lawsuit complained the appliances were exploding, the company said Wednesday.

The news comes after the South Korean electronics giant recalled millions of its Galaxy Note 7 smartphones following a series of battery explosions.

Samsung is "in active discussions" with the US Consumer Product Safety Commission on issues with top-load washing machines manufactured between March 2011 and April 2016, a company statement said.

"In rare cases, affected units may experience abnormal vibrations that could pose a risk of personal injury or property damage when washing bedding, bulky or water-resistant items," it said.

Samsung recommended consumers use the "lower speed delicate cycle" when washing bedding or bulky items until it can offer additional information or remedies.

The safety commission confirmed it is in discussions with Samsung and that they are "working on a remedy for affected consumers."

A US law firm has filed suit in New Jersey "alleging that some Samsung top-loading washing machines explode in owners homes," leading to potential injury or damage, attorney Jason Lichtman said earlier on Wednesday.

"Users have reported Samsung top-load washers exploding as early as the day of installation, while other owners have seen their machines explode months or even more than a year after purchase," the firm said in a statement.

Samsung -- the world's largest maker of smartphones as well as mobile phones in general -- suffered a major blow to its prestige when it was forced to recall some 2.5 million of its flagship smartphones after some users complained that batteries had caught fire while charging.

The recall affects phones sold in 10 countries, including around one million sold in the United States.

source: www.abs-cbnnews.com

VIRAL: Woman claims Samsung S7 Edge went up in smoke in Antipolo

MANILA - A woman has claimed her Samsung S7 Edge phone went up in smoke, causing panic at a beauty salon in Antipolo City.

Makeup artist Weng Briones, 36, posted photos of the charred gold phone on Facebook, which has been shared over 13,000 times.

Samsung is in the middle of a recall of 2.5 million Galaxy Note 7 phones, a larger stylus-equipped version of the S7 Edge, due to overheating and exploding batteries.

The South Korean electronics giant has not admitted to defects on the S7 Edge and S7 phones, which were released ahead of the Note 7.

Briones said her 16-year-old daughter was tweeting on her phone when the handset heated up and started emitting smoke.

"Natakot kaming lahat naglabasan lahat ng nasa loob ng salon [We were all so scared so we went out of the salon]," she told ABS-CBNNews.com.

Panicked salon patrons splashed water on the phone. A female staff then covered it up with a wet towel then stepped on it, she said.

"Puro smoke lang po tapos kusang bumuka yung phone dahil lumobo na yung battery [It was all smoke then the phone broke because the battery became swollen]," she said.

Briones she said she brought the unit to the Samsung store in SM Tatay, which initially offered to replace her phone for free.

"Sabi ko gusto ko ng refund kasi kung papalitan lang din nila. Ganun pa rin. Andun pa rin yung fear ko na maulit. They did not resist naman. Sabi lang nila na tatawag sila sa main office. Then after a rew minutes ay inabot na nila sa kin yung pera. P39,990," she said.

[I said I want a refund because they would just replace it again. I was afraid that it would happen again. They didn't resist and said they would just contact he main office. After a few minutes, they gave me P39,990.]

Store staff did not explain why the phone overheated and emitted smoke said Briones. But on the same night, the company's marketing head told her that they would investigate the matter, she said.

ABS-CBNNews.com is still trying to contact Samsung as of posting time.


In the United States, a man named Daniel Ramirez has sued the company after he sustained second and third-degree burns from the S7 allegedly exploding in his pocket, said the Tech Times.


In the United Kingdom, a woman named Sarah Crockett also said her S7 blew up while she was inside a cafe. Samsung said there were "no known safety issues" with the device but that it would investigate what happened, according to The Sun.

source:  www.abs-cbnnews.com

One million Samsung smartphones in US recall

SAN FRANCISCO - The US Consumer Product Safety Commission on Thursday announced a recall of around one million Samsung Galaxy Note 7 smartphones plagued by incidents of batteries bursting into flames.

The move by the US safety agency formalizes the recall underway in 10 countries after reports of faulty batteries that caused some handsets to explode during charging.

Samsung meanwhile announced replacements for the faulty phones would be available to US customers next week.

In the United States, there have been 92 reports of batteries overheating, including 26 reports of burns and 55 reports of property damage, including fires in cars and a garage, the commission said in a notice.

The US notice affects around one million of the global total of 2.5 million handsets being recalled, which has cast a cloud over the South Korean electronics giant and world's largest smartphone vendor.

Samsung has advised consumers in 10 countries to trade their handsets for temporary replacement phones until it releases an updated flagship device.

But many users have snubbed the offer, choosing to wait until the new phones were available, citing the inconvenience of switching devices for an interim period.

And different regulatory practices in different countries -- as well as varying reactions from carriers -- have caused a degree of customer uncertainty and confusion that is hampering Samsung's efforts to get the recall behind it as quickly and painlessly as possible.

In a half-page ad carried by major South Korean newspapers on Wednesday, Samsung announced a Note 7 software update that will limit battery recharges to 60 percent of capacity. It would prevent the phones from overheating, and thus exploding, but would effectively mean a downgrade of the high-end device.

REPLACEMENTS COMING

Samsung Electronics America announced that replacements for Note 7 smartphones will be available at retail locations in the US by September 21.

“Our collaboration with the CPSC to fast-track a voluntary recall in the US addresses safety concerns by ensuring we reach Note 7 owners quickly to exchange their devices,” Samsung America president Tim Baxter said.

"We are asking owners to act now by powering down their Note 7 devices and receive a replacement device or a refund through our exchange program."

In an effort to steal a march on Apple, the Note 7 was given an early launch in the key US market, making that a priority for the recall effort.

US and Japanese aviation authorities have urged passengers not to turn on or charge the large-screen phones on aircraft, while the US Federal Aviation Administration has told passengers not to stow the device in checked baggage.

Samsung's recall trouble comes as rival Apple seeks to regain momentum with the Friday release of new-generation iPhone 7 models.

The newest versions of the California-based technology giant's lifestyle-changing iPhone aim to win over users with sophisticated camera technology, water resistance, more power and other improvements.

source: www.abs-cbnnews.com

Samsung struggles with critical Note 7 recall

SEOUL - Samsung said Wednesday it was doing its best to push through a challenging recall of its Galaxy Note 7 smartphones, as it offered a software fix to jolt users into returning defective devices.

The success of the recall is seen as crucial to Samsung retaining brand trust and loyalty and preventing customers defecting to arch-rival Apple's new iPhone 7 or cheaper Chinese-made models.

The South Korean electronics giant moved quickly earlier this month to suspend sales of its latest large-screen smartphone and announced a recall of 2.5 million units already sold, after faulty batteries caused some handsets to explode during charging.

Samsung had advised consumers in 10 countries to trade their handsets for temporary replacement phones provided by the firm until it releases new Note 7s.

But many users have snubbed the offer, choosing to wait until the new phones were available, citing the inconvenience of switching devices for an interim period.

And different regulatory practices in different countries -- as well as varying reactions from carriers -- have caused a degree of customer uncertainty and confusion that is hampering Samsung's efforts to get the recall behind it as quickly and painlessly as possible.

NO OVERNIGHT FIX

"It's not something that can be done overnight," said a Samsung spokeswoman.

"The process is different for each country because they have different regulations and we also have to talk with the carriers in those countries," she said.

In an effort to steal a march on Apple, the Note 7 was given an early launch in the key US market, making that a priority for the recall effort.

Samsung is working with the US Consumer Product Safety Commission, but has yet to provide a specific date for replacing returned units.

"We would like the consumers to receive their new phones quickly and easily but the situation is different for each country and we are doing our best in the given circumstances," the Samsung spokeswoman said.

In a half-page advert carried by major South Korean newspapers on Wednesday, Samsung announced a Note 7 software update that will limit battery recharges to 60 percent of capacity.

It would prevent the phones from overheating, and thus exploding, but would effectively mean a downgrade of the high-end device -- and therefore an incentive to turn it in.

The automatic update for South Korean users will take place on September 20, a day after Samsung begins to hand out new Note 7 handsets with fault-free batteries.

'DEEP' APOLOGY
Wednesday's newspaper ads also carried a message of "deep, sincere apology" and a vow to retain the "love and trust" of Samsung consumers.

The recall comes at a particularly sensitive time, with Samsung's mobile division finally showing some real momentum after two years of profit growth declines in an increasingly competitive and saturated market.

The degree of long-term damage is still difficult to estimate.

"The company has acted aggressively to address the problem ... (but) the recall is likely to reverse improving profitability in Samsung's IT and mobile communications segment over the next one to two quarters," credit ratings agency Moody's said in a statement.

The statement noted that the newly launched iPhone 7 smartphone could provide a tempting alternative to disgruntled Samsung consumers, and said the Korean firm might be forced to increase marketing expenses to regain consumer confidence.

The mobile business accounts for a major share of profits at Samsung, which is the world's largest smartphone maker but also produces home appliances and memory chips.

Nomura has cut its profit forecast for Samsung's mobile division in the third quarter by 900 billion won (800 million dollars) to 3.1 trillion won.

"Nevertheless we are still positive on the company's mid-long term competitiveness and earnings forecast mainly due to semi-conductor and display competitiveness," Nomura said in a research note.

source: www.abs-cbnnews.com

When batteries explode: five questions

SEOUL - Samsung is warning consumers to stop using its flagship Galaxy Note 7 smartphone after a spate of battery explosions.

It was the latest in a string of lithium-ion battery fires on products ranging from laptops to hoverboards to airliners -- and a reminder that pushing the technology envelope can sometimes be problematic.

Here are some things to know about the recall and why batteries can be a fire hazard.

HOW DO THESE BATTERIES WORK AND WHY DO THEY CATCH FIRE?

A lithium-ion battery is a kind of rechargeable battery that uses different materials, one holding positive ions -- the cathode -- and the other holding negative ions -- the anode.

These ions move one way when charging, and back again when discharging -- being used.

These two layers -- or conductors -- are never supposed to touch, so manufacturers insert separators to keep them apart.

Unfortunately, the chemical reaction that makes batteries work also creates heat. Overcharging the packs -- or charging them too fast -- can lead to fires.

WHAT IS THE ISSUE WITH SAMSUNG'S BATTERIES?

We don't know exactly, but Samsung has given some clues. It said parts of the battery that should never touch came together due to a "very rare manufacturing process error".

Gadget makers weigh all sorts of factors like performance, cost and safety when rolling out their next-generation technology.

And the race to push more battery life into their latest phone or tablet can lead to unexpected results.

"Smartphone makers are trying to squeeze these batteries into a small, thin package," said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo.

"Since batteries generate energy through a chemical reaction, it's really hard to reduce the risk (of fire) to zero.

"Sometimes convenience comes with a price."

HAS THIS HAPPENED BEFORE?

Yes. Battery fires have been reported in products including Sony Vaio laptops, last-year's must-have toy the hoverboard, electric bikes and even Boeing's Dreamliner jet.

In Samsung's case, faulty batteries caused some handsets to burst into flames during charging.

Cases of exploding batteries continued to emerge following the recall announcement, as users claimed a burning device had damaged a hotel room in Australia or set a car on fire in the US.

HOW EXTENSIVE IS THE PROBLEM?

Not very. Millions of lithium-ion batteries are produced annually with a tiny fraction of those catching fire or exploding.

At the start of this month, Samsung had received reports of about 35 incidents involving the phone's batteries.

"It's not easy to know if Samsung's problem is the same as others...at this point," Yasuda said.

"If its battery suppliers sell these same ones to other producers,it could possibly affect them too."

WHAT DOES THIS MEAN FOR SAMSUNG AND OTHER GADGET MAKERS THAT USE THESE BATTERIES?

It will damage Samsung's reputation and likely hurt profits at a time when it is feeling the squeeze from Apple's iPhone and Chinese rivals in the lower-end category. The mobile business accounts for a major share of Samsung's profits.

It will also put pressure on gadget makers to figure out how to make battery packs safe for ever-smaller devices.

"We always want batteries to be safe but also to be more efficient," said Guy Marlair, a France-based safety expert.

"The more that we boost the battery's performance, the higher the energy density in a small space and the tougher it is to manage security."

source: www.abs-cbnnews.com

US tells consumers to stop using fire-prone Samsung phones

SEOUL/NEW YORK -- A U.S. government safety agency on Friday urged all consumers to stop using Samsung Galaxy Note 7 phones, which are prone to catch fire, and top airlines globally banned their use during flights.

Following reports that the phones' batteries have combusted during charging and normal use, the U.S. Consumer Product Safety Commission said it was working on an official recall of the devices and that users should turn them off in the meantime.

Samsung Electronics Co Ltd said it was working with the agency. It voluntarily issued a recall last week for 10 markets including the United States, and it was expediting shipments of replacement phones to customers.

The U.S. government action heralds more fallout for the South Korean manufacturer, which may take a financial hit from the recall and lose customers who are concerned about the quality of its flagship phones.

For Samsung, which prides itself on manufacturing prowess, the scale of the recall is expected to be unprecedented. Some 2.5 million of the premium devices have been sold worldwide, the company has said. Its shares closed down 3.9 percent on Friday.

Samsung said users in the United States can exchange their phones for one of several models and receive a $25 gift card.

"The cost of the recall is going to be astronomical," said product liability expert and chief executive officer of Real-World Forensic Engineering, Jahan Rasty. "They have to compensate people, fix the problem and give them a revised version of the product that doesn't have the same manufacturing or design defect.

"The longer this story lingers, the more it will etch itself in people's minds," he said.

AIRLINE BANS

One pain point is that the devices are now off limits in a typically high-use setting: aboard planes.

Aviation authorities and airlines from North America to Europe and Asia have issued bans or guidance on the phones. On Thursday, the U.S. Federal Aviation Administration said travelers should not use or charge them while in the air, or stow them in checked luggage.

That prompted the world's three largest airlines by passenger traffic - American, Delta and United - to start telling passengers at the gate and on board aircraft to keep the phones switched off until they deplane.

While experts say the bans may be tough for airlines to enforce, they nonetheless may deter would-be customers of the Note 7 in addition to annoying existing customers.

That's because airlines have increasingly made movies and TV shows available free for streaming on smart devices in flight, to avoid the cost of installing new screens on seat-backs. For now, Note 7 customers are cut off from this entertainment.

This is "a huge black eye for Samsung," TECHnalysis Research President Bob O'Donnell said.

Companies ranging from Singapore Airlines Ltd and Qantas Airways Ltd to Air France KLM SA have instituted similar bans on the device.

They are the latest in ongoing efforts in the airline industry to manage the use of lithium-ion batteries, which are known to combust and are used in many devices, from phones and laptops to toys.

Top airlines banned hoverboards during the Christmas holiday season in 2015. Earlier this year, the U.N.'s aviation agency prohibited shipments of lithium-ion batteries as cargo on passenger planes.

A January report from the FAA said at least 171 incidents of smoke, fire, extreme heat or explosion involving batteries have occurred since 1991.

In some instances, they have caused emergency landings, as when a camera short-circuited and started a small fire in the overhead bin of an American Airlines flight in September 2013. Injuries were rare, the report said.

(Reporting by Se Young Lee in Seoul and Jeffrey Dastin in New York; Additional reporting by Victoria Bryan and Deborah Todd; Editing by Tiffany Wu and Cynthia Osterman)

source: www.abs-cbnnews.com

US regulator tells air passengers not to turn on Galaxy Note 7 phones

WASHINGTON/SYDNEY - Airline passengers should not turn on or charge their Samsung Electronics Co. Ltd. Galaxy Note 7 smartphones during flights or stow them in checked baggage due to concerns over the phone's fire-prone batteries, the U.S. Federal Aviation Administration said.

The FAA said on Thursday it "strongly advises" passengers to follow its guidance "in light of recent incidents and concerns raised by Samsung about its Galaxy Note 7 devices."

The South Korean manufacturer announced last week it was recalling all Galaxy Note 7 smartphones equipped with batteries it has found to be prone to catch fire.

On Friday, Singapore Airlines Ltd. became the latest carrier to ban use of the phones during flights, following an identical move by three Australian airlines.

"The powering up and charging of Samsung Galaxy Note 7 mobile phones is prohibited on all our flights," Singapore Airlines said in a statement.

On Thursday, Australia's Qantas Airways Ltd., Jetstar Airways and Virgin Australia Holdings Ltd. announced they had banned passengers from using or charging the phones in response to the recall.

Although customers will still be able to bring the phones on flights, the bans extend to the phones being plugged into flight entertainment systems where USB ports are available.

Australia's aviation regulator said on Friday it was working with airlines and foreign aviation safety regulators "to ensure that recalled devices are treated and carried safely."

Delta Air Lines Inc, the No. 2 U.S. airline by passenger traffic, said it is still studying the issue.

"Delta is in constant contact with the FAA and other bodies in its run of business as a global airline. We will comply with any directive and are studying this matter. Safety and security is always Delta's top priority," spokesman Morgan Durrant said in a statement.

United Continental Holdings Inc and American Airlines Group Inc did not immediately respond to requests for comment on the FAA advisory.

Vaughn Jennings, a spokesman for Washington-based trade group Airlines for America, said the organization was "closely monitoring any developments as this issue evolves."

"Each individual carrier makes determinations, in compliance with FAA safety rules and regulations, as to what is permitted to be carried on board and in the cargo hold," Jennings said in a statement.

The FAA statement does not order U.S. airlines to take action.

The International Air Transportation Association said airlines have conducted risk assessments and noted that other phones have been recalled for battery issues.

"Although Samsung is the most recent company advising of faulty devices, others have issued similar recalls and warnings regarding lithium batteries in laptops over the last 12 months, so the industry is familiar with and equipped to manage such situations," the IATA said.

source: www.abs-cbnnews.com

Australian airlines ban use of Samsung Note 7 phones after battery fires

SYDNEY - Three Australian airlines have banned passengers from using or charging Samsung Electronics' Galaxy Note 7 smartphones during flights due to concerns over the phone's fire-prone batteries.

Qantas, its budget unit Jetstar and Virgin Australia said they had not been directed to ban the use of the phone by aviation authorities, but did so as a precaution following Samsung's recall of the phones in 10 markets.

Although customers will still be able to bring the phones on flights, the ban extends to the phones being plugged in to flight entertainment systems where USB ports are available.

The recall follows reports of the 988,900 won ($885) phone igniting while charging - an embarrassing blow to Samsung, which prides itself on its manufacturing prowess and had been banking on the devices to add momentum to a recovery in its mobile business.

Samsung, the world's biggest smartphone vendor, has sold 2.5 million of the premium devices so far.

"Following Samsung Australia's recall of the Samsung Galaxy Note 7 personal electronic device we are requesting that passengers who own them do not switch on or charge them in flight," a Qantas spokesman said in an emailed statement.

Samsung Australia said in a statement that it had liaised with Qantas and Virgin Australia following the recall.

The US Federal Aviation Administration (FAA) is considering its response to the Samsung recall and "working on guidance related to this issue," according to a FAA statement quoted by technology website Gizmodo.

Airlines have previously banned hoverboards from planes due to battery-fire risks.

In February the International Civil Aviation Organization, a United Nations' agency, banned lithium-ion batteries from checked luggage following concerns from pilots and plane makers that they are a fire risk.

source: www.abs-cbnnews.com

Samsung considers Galaxy Note 7 recall: source

SEOUL - Tech giant Samsung Electronics Co. Ltd. is considering a recall of its new flagship Galaxy Note 7 devices amid reports that some of the premium phones are catching fire due to battery problems, a person familiar with the matter said on Friday.

The person, who declined to be identified as the deliberations were not yet finalized, told Reuters the firm had not decided specifics such as the timeline for a potential recall or how many phones could be affected.

Samsung declined to comment on any recall plan for the high-end gadget, which has been the subject of online complaints from users claiming their phones had caught fire while charging.

While analysts expect the Note 7 problems to be resolved quickly, ongoing major problems could derail Samsung's mobile recovery after a string of product successes had reversed the smartphone leader's declining market share.

The South Korean firm has pinned its hopes on the Note 7 to maintain strong sales momentum in the second half against stiffening competition from the likes of Apple Inc, which is expected to release its latest iPhone next week.

"They need to nip it in the bud right now. The last thing they want is for memes to be spreading on the internet associating the Samsung name with an exploding battery or injury," IDC analyst Bryan Ma said.

On Wednesday Samsung said it had halted supply of the new phone to the top three South Korean carriers and that shipments were being delayed as it conducted additional quality testing.

It did not elaborate on any problems it may have found with the gadget, which was launched in South Korea and other markets on Aug. 19 and has been generally well-received by critics.

Investors stripped about $7 billion off Samsung Electronics' market value in response to the shipment delays on Thursday, but sentiment appeared to have recovered in Friday trading. The shares were up 0.3 percent compared with a 0.1 percent rise for the broader market.

SHIPPING DELAYS

South Korea's Yonhap News Agency reported separately that Samsung Electronics had pushed back the Note 7's launch in key European markets such as Britain and France. Shipments to the United States appear to have halted as well, Yonhap said, without citing a direct source.

Samsung said in a statement to Reuters it was "conducting a thorough inspection" with its partners on the Note 7 and would share its findings as soon as possible. The company did not immediately comment on Yonhap's report.

Credit Suisse said a recall or major shipping delays could wipe 1.5 trillion won ($1.34 billion) off the firm's 2016 operating profit estimate of 30.2 trillion won.

But the brokerage said this was the "absolute worst case" scenario and was unlikely to materialize, as it expected the firm to resolve issues with the phone before the fourth quarter.

Hyundai Securities also said in a report released on Thursday that the Galaxy Note 7's problems should be resolved within a "few weeks". The brokerage retained its third-quarter operating profit forecast of 8.5 trillion won.

source: www.abs-cbnnews.com

Samsung mobile recovery suffers blow as Galaxy Notes 'catch fire'

SEOUL - The recovery in Samsung Electronics Co. Ltd.'s mobile business suffered a blow on Thursday as reports of exploding batteries forced the firm to delay shipments of Galaxy Note 7 smartphones, and knocked $7 billion off its market value.

Investors drove the stock to two-week lows after the global smartphone leader told Reuters late on Wednesday the shipments had been delayed for quality control testing, and that shipments to South Korea's top three mobile carriers had been halted.

Faults with the new premium flagship device could deal a major blow to the South Korean giant, which was counting on the Galaxy Note 7 to maintain its strong mobile earnings momentum against Apple Inc's new iPhones expected to be unveiled next week.

"This is some major buzz-kill for Samsung, especially given all of the hard-earned excitement that products like the Note 7 have been garnering lately," IDC analyst Bryan Ma said.

"The pending Apple launch puts all the more pressure for them to contain this quickly. The timing of this couldn't have been worse."

Samsung did not comment on what problem it was trying to address or whether other markets were affected besides South Korea.

Sister company Samsung SDI Co Ltd said that while it was a supplier of Galaxy Note 7 batteries, it had received no information to suggest the batteries were faulty.

Several people posted images and videos of charred Galaxy Note 7s online and said their phones had caught on fire.

"Be careful out there, everyone rocking the new Note 7, might catch fire y'all," one user said in a YouTube clip showing a burnt Note phone. It was not immediately possible to confirm the veracity of the clip.

Samsung's shares, which hit a record high of 1.694 million won last week, fell 2 percent, and Samsung SDI tumbled 6.1 percent, versus a 0.1 percent fall for the broader market .

Several South Korean media reports, without citing direct sources, said Samsung would soon announce a plan to recall affected Note 7 phones and replace their batteries as opposed to giving the users a new device. A Samsung spokesman declined to comment on the reports.

DAMAGE CONTROL

Last year, production problems for the curved displays for the Galaxy S6 edge model resulted in disappointing sales, and Samsung risks a repeat this year if it cannot address the Galaxy Note 7 problems quickly.

Its mobile profit is on track to post annual growth for the first time in three years, thanks to robust sales of the Galaxy S7 and S7 edge devices that it launched in March to critical acclaim.

The Galaxy Note 7 received similar praise, raising expectations for strong sales in the second half. Samsung said in August demand for the new handset, priced at 988,900 won ($882) in South Korea, was far exceeding supply, pushing the firm to delay the launch in some markets.

HDC Asset Management fund manager Park Jung-hoon said it now appeared inevitable that Samsung's smartphone average selling price and profits would miss lofty second-half expectations.

"Apple is supposed to show off the iPhone 7 next week and this issue has emerged, so the current state of things do not look good," he said.

Though a components pick-up will buttress overall profits, Park said mobile operating profit might decline by up to 200 billion won for July-September.

The mobile division accounted for about 54 percent of Samsung Electronics' January-June operating profit of 14.8 trillion won.

Hyundai Securities said in a report that the Galaxy Note 7's problems should be resolved within a "few weeks".

The brokerage retained its third-quarter operating profit forecast of 8.5 trillion won.

source: www.abs-cbnnews.com