Business
Fire at Note 7 battery unit in China
A massive fire broke out at the Samsung SDI Co Ltd factory in Tianjin city in China. No casualties were reported and the plant did not sustain heavy damage. The fire broke out at a waste depository, where faulty batteries and other electronics were kept. 110 fire fighters and 19 fire engines were called in to bring the fire under control.
Inside source reveals that faulty batteries caused Note 7 explosions
Samsung is set to release the official report of the investigation into the exploding Samsung Galaxy Note 7 phones on 23rd January. While the world awaits the official report, an inside source, who refused to be named, told Reuters that the investigation concluded that the battery of the Note 7 was at fault. However, that is just half of the story.
A recap of the Samsung Galaxy Note 7 fiasco
Released in August 2016, the Samsung Galaxy Note 7's initial popularity dwindled in a matter of days after widespread reports of battery explosions. Responding to the reports, Samsung recalled 2.5 million Note 7 phones in September, and blamed a supplier for manufacturing defects. However, the replacement phones had the same problem. Unable to cope, Samsung discontinued the Note 7 in December 2016.
The degree of monetary damage suffered by Samsung
The gross mismanagement of the exploding Galaxy Note 7 situation, and the subsequent discontinuation of the product resulted in a massive $5.2 billion blow to Samsung's operating profits over three quarters.
Samsung's investigation into the Note 7 explosions
In October 2016, Samsung announced a full investigation into the issue, and said that all aspects of the phone would be examined by itself and third-party investigators. The source told Reuters that Samsung was able to replicate the fires in the lab, but the problem couldn't be explained as hardware or software-related issues. It was thus concluded that the battery was at fault.
Independent firm holds Samsung's design responsible
In December 2016, engineers at software company Instrumental dismantled a Note 7 and found that Samsung's "aggressive" design had squeezed too large a battery into too small a space. This resulted in compression of the battery, causing the lithium cobalt oxide and graphite inside the battery to touch, which, in turn, overheated the electrolyte. The excess heat accumulated caused the explosions, the report stated.
The importance of an honest, convincing report
Regardless of the existing theories in circulation, it is imperative for Samsung to provide a detailed and satisfactory explanation about what went wrong with the Galaxy Note 7 on 23rd January, and provide assurances to investors and customers about its manufacturing standards. With the existing shaky levels of consumer trust, a failure to do so could spell doom for Samsung in the smartphone market.
Faulty batteries caused Note 7 fires: Samsung
Samsung's probe into its Galaxy Note 7 chaos has revealed that the overheating and burning of phones was caused by defective batteries. According to Samsung, neither the software nor the hardware was at fault. The findings suggested that the problems were caused by insufficient insulation material within the batteries and a design which did not give enough room to safely accommodate the batteries' electrodes.
