Samsung’s market capitalization has taken a severe beating on account of Note 7 battery explosion issue. Samsung had sold more than 2.5 million Note 7 phones and it was forced to issue a global recall of the Note 7 phones after incidents of battery explosion were reported in the United States. These explosions were of serious nature and posed severe threat to phone users. During the same time, Apple announced the new iPhone 7 model and it could not have been a better time for Apple’s shares as the company benefited due to Samsung’s woes.
Although Samsung was quick to try and fix the issue, the damage had been done. For a start, Samsung issued a recall and then offered customers refund in the event they wanted to return the handsets. The company also developed a software update that would limit the charging of battery to 60% of the total capacity. The software update also flashed warning message to those users who would try to charge the battery. This update was rolled out on 20th September, and Note 7 users should be able to access these without delays.
The company has shipped 500,000 Note 7 replacement handsets to United States. The replacement program is already open and Note 7 users may visit the store from which they bought the original phone to get a free replacement. Users have reported that the replacement effort does take some time and it may take a couple of hours for the entire process to be completed.
Note 7 was launched at an introductory pricing of $900 and comes in multiple variants; iPhone 7 comes between $649 to $849. For a detailed review of the top ten features of Samsung Note 7’s features, have a look at this video: