Note 7 recall did not affect Samsung brand

Samsung Electronics unveiled its Galaxy Note 7 - an Android-based phablet smartphone - on 2 Aug'16.

The device was officially released on 19 Aug'16 as a successor to the Galaxy Note 5, kicking off the sales.

The Note 5's evolution inherited some improvements from the Galaxy S7.

Some of its features: IP68 water resistance, dual-sided display, iris recognition system, USB Type-C port, etc.

Samsung Electronics has recalled its flagship Galaxy Note 7 smartphone over a faulty battery issue after several complaints.

Samsung's Mobile Division Head Koh Dong-Jin said the sales of the devices would be halted in ten countries.

He apologized for the battery problem that has been linked to the phone's explosion during or after charging.

Nearly 2.5 million units have already been sold globally.

For those who have already bought the smartphone, Samsung announced a global replacement program through which users can swap the old device for a new one.

The company stated it is hard to find out which devices were affected among all the 2.5 million Galaxy Note 7s sold.

The replacement program was announced only days ahead of its arch rival Apple's newest iPhones release.

Samsung's latest move came days after it delayed supply to carriers and cited a need for conducting more tests.

South Korean media reports showed users with their charred Note 7s that caught fire while being charged.

Samsung said globally, 35 cases of phone catching fire or exploding due to the faulty battery were reported.

The company would take two weeks to prepare the replacements.

Experts have assessed that Samsung would incur a cost of approximately $1 billion to recall and replace all the Samsung Note 7s it has distributed.

Though Samsung refused to give details of the exact amount involved, the company conceded that the amount was "heartbreaking."

So far Samsung has shipped at least 2.5 million Note 7 smart phones across the world.

Taking note of the risks posed by charging Samsung Galaxy Note 7s, the US Federal Aviation Authority has issued warnings against charging the phones aboard flights.

The FAA advised passengers "not to turn on or charge these devices on board aircraft and not to stow them in any checked baggage."

Several other international carriers have imposed similar restrictions.

In what is being recognized as the smartphone industry's largest recall ever, Samsung Electronics Co. is disinvesting its stakes in other companies to raise money.

According to Samsung, shares were sold in drive-maker Seagate Technology PLC, chip-maker Rambus Inc., Dutch semiconductor-equipment maker ASML Holding NV and Japanese electronics maker Sharp Corp.

This move follows Samsung's decision to recall 2.5 million Galaxy Note 7 smartphones.

In the midst of its phone-crisis, reports suggest Samsung has temporarily halted production of Galaxy Note7 models.

Despite replacing devices, incidents of fires/overheating of Note7 phones continue being reported.

Samsung's decision comes in wake of U.S. phone carriers like AT&T, T-Mobile halting exchange/sale of Note 7 devices complicating the recall process.

Samsung's shares have plummeted; the recall and halting production could significantly worsen scenario.

Samsung Electronics has asked users of the Note 7 to switch-off their devices amid growing concerns of the fire hazard that the device poses.

Samsung added that it has directed all global retailers to cease sales of the Note 7.

Samsung said, "consumers with either an original Galaxy Note7 or replacement Galaxy Note7 device should power down and stop using the device."

In an attempt to expedite the recall of its defective Note 7 phones, Samsung has now set up Note 7 exchange counters at busy airports in the US.

According to a company statement, customers can either exchange their handsets for a new device or receive a full refund for the Note 7.

Samsung has not specified which US airports would have the booths.

In a statement, Samsung's co-chief executive officer Kwon Oh-hyun, said the company sought to make a fresh start after the Note7 fiasco.

Speaking about the issues with the Note7 crisis at the 47th anniversary of Samsung's founding, he said "it served as momentum for a new start."

He stated that Samsung would develop a crisis management system to better respond to issues.

According to reports, a man in Canada, Amarjit Mann felt his pocket warm up while driving.

On taking his Samsung Galaxy S7 out from his pocket, the phone exploded and filled the car with smoke.

A spokesperson from Samsung Canada stated that remains of the phone would be examined before the issuance of an official statement.

A recently released Reuters/Ipsos opinion poll stated that the recall of Samsung's Note 7 phone did little to dent the company's brand image.

Surveys found no difference in loyalty among Samsung and Apple customers and found no change in interest among Samsung users who did and did not hear about the recall.

The poll found 91% Samsung users would likely purchase another Samsung smartphone.