New Samsung smartphone banned from boarding airplanes

Global Business

New Samsung smartphone banned from boarding airplanes

Samsung Electronics continues to reel from the effects of defective batteries in its latest Galaxy Note 7 smartphone. In fact, airlines worldwide have banned the smart phones on their planes as a safety precaution.

CCTV’s Shane Hahm reports.

Follow Shane Hahm on Twitter @ShaneHahm

New Samsung smartphone banned from boarding airplanes

New Samsung smartphone banned from boarding airplanes

Samsung Electronics continues to reel from the effects of defective batteries in its latest Galaxy Note 7 smartphone. In fact, airlines worldwide have banned the smart phones on their planes as a safety precaution. CCTV’s Shane Hahm reports.

Samsung Electronics is in damage control mode. Fears of exploding batteries have forced the company to pull its latest device from 10 markets. In South Korea, Samsung began offering free Galaxy Note 7 exchanges this week. Despite the hassle, customers said it’s the least the company can do.

Samsung Electronics said it has sold 2.5 million phones with defective batteries, including roughly 400,000 units here in South Korea. Some analysts said the recall could cost Samsung as much as $5 billion in lost revenue this year alone. Add to that the long-term effects on the company’s brand and reputation; the damage could be more far-reaching.

“Overall, hesitation toward the Samsung brand will create a lost opportunity of about 3 to 4 million units for Samsung in the September to December time frame. So there will be a slight dip in market share I believe. But Q1, things will probably change,” Tom Kang, the research director at Counterpoint Technology Market Research, said.

Samsung is offering a software update in South Korea which will only allow batteries to charge up to 60 percent full. It also plans to resume sales of Galaxy Note 7s here on September 28th, while it reviews circumstances in other markets. As the company moves to limit the fallout from the recall, it may also present the company an opportunity to strengthen its customer service credentials.