On September 2, 2016, Samsung Galaxy Note7 went public in mainland China. On the same day, Samsung Electronics made a statement in South Korea against the recall of “GalaxyNote7 due to battery explosionâ€.
South Korea's Samsung Electronics at a press conference held in Seoul also confirmed that it will recall the 2.5 million Galaxy Note7 smartphones already on sale globally. It is understood that this Galaxy Note7 mobile phone just started on the 19th of last month in South Korea, the United States, Australia and other 10 countries listed on the world, the recall time is less than two weeks from the sale time.
According to previous media disclosures, statistics show that 24 out of 1 million Galaxy Note7 are bad. Wang Yanhui, general secretary of the China Mobile Alliance, pointed out that in general, the defective rate of mobile phones is only about one millionth. It is normal to see 2.5 million mobile phones sold by Samsung alone. It can be seen that there are currently 35 accidents. Its defect rate has reached nearly 15 parts per million, which is a full 15 times higher than the normal defect rate indicator."
Gao Dongzheng, head of Samsung’s mobile phone business, said that it will stop sales of the Note7’s 10 markets and will delay the time to market in major European countries such as the United Kingdom and France.
In view of the security risks associated with Samsung's Note7 mobile phones being exposed to frequent batteries, dozens of airlines have announced that they have included Note7 on the list of dangerous goods. Lei Feng network (search "Lei Feng network" public attention) finishing found that as of now, Samsung Note 7 mobile phones have been China, the United States, Japan, Singapore, South Korea and Australia, more than 10 countries and regions such as the prohibition of carrying and consignments. Several dozen airlines, including HNA Group, have announced that they prohibit all employees from carrying the phone on board and strictly inspect passengers' use or shipment of Note7 mobile phones.
The recall of the Note 7 battery on a global scale has made Samsung a focus of public attention. According to the disclosure of Samsung and the Canadian Ministry of Health, there have been more than 70 Galaxy Note 7 battery fires in the United States alone.
But it is strange that this recall is not directed at users in mainland China. In the announcement released by Samsung, the National Bank version of the Galaxy Note7 uses a different battery supplier, it is not in this replacement category, its sales in the country will not be affected, still on schedule.
Why is the recall not directed to users in mainland China?
Note 7 has two battery suppliers, namely Samsung subsidiary SDI and Hong Kong’s new energy technology company ATL. The battery of the accident was provided by SDI. The battery provided by ATL is completely free of any problems.
According to Dow Jones News, 75% of the approximately 2.5 million Galaxy Note 7 phones that have been shipped or reach consumers are supplied by the subsidiary Samsung SDI Co., and the rest use ATL's. battery. According to foreign media reports, Samsung is preparing to replace all Samsung SDI batteries recalled in Note 7 as part of the recall plan. Conversely, users of the Samsung Note 7 in mainland China are not in the recall because of the use of ATL batteries.
But China has 1858 Note 7 to be recycled
The AQSIQ said on the website that some of the recalled Galaxy Note 7 is a mobile phone sold through Samsung's official website in China before being released on September 1st, which is part of Samsung's test plan.
At the beginning of August, Samsung launched the “Note7 Thousand People Experience Group†initiative to experience Note7 in its official Gaelic community. At that time, Samsung’s official introduction of the Thousand People Experience Group allowed users to experience Samsung’s Note7 one month in advance. Hardware engineer @ Ge Lan V announced the recall of Note7 of the 1000-person experience group on Weibo. Samsung said that some models in the “Note7 Thousands Experience Group†campaign used the batteries of the problem suppliers and there was a security risk, so the recalls were made on this batch of machines.
SDI will withdraw from Samsung battery supplier
Samsung SDI is the kinescope production division of Samsung Group. Since the previous year, it has been developing non-removable batteries. However, its output has not kept pace. It was not used during the Galaxy S6 period. This is the first time that Samsung has used it in batches, but it has not been expected to be so serious. The problem.
According to informed sources, after Samsung announced the recall, ATL received more Galaxy Note 7 battery orders, Chinese battery suppliers have taken over the supply of Galaxy Note 7 batteries from SDI, and ATL chief operating officer Joe Kit Chu Lam was interviewed. At the time, he said that due to the confidentiality agreement, he could not disclose the information about the order, but the company's performance this month grew substantially. He hopes that this growth can last one or two quarters without any shortage of capacity. ATL is also Apple's battery supplier.
At the same time, the new batch of Note 7 will completely abandon the SDI battery.
Reimbursement to U.S. Users: $25 Gift Card
On September 10, Samsung issued a statement bluntly, suggesting that Korean users stop using the Galaxy Note 7 phone and go to the nearest Samsung service center to replace it.
Samsung’s website’s statement stated that Samsung will provide rental mobile phones for users who submit Samsung Note7, and reiterated that the new Note 7 with new batteries will be available from September 19. To take a chestnut, the US compensation plan is this:
Samsung offers two kinds of programs, one is free replacement, is expected to get a new machine after a week;
The second is to replace the Galaxy S7 or S7 edge. If you buy an accessory, Samsung will take back and refund the difference.
Regardless of which of the above options is chosen, Samsung will also compensate 25 US dollar gift cards or equal credit card credits.
Local users can immediately contact the retailer of the purchase channel to return or replace
Frequently behind the situation: Evaporation of billions of dollars
The frequent occurrence of Samsung’s situation has directly triggered a big drop in the capital market. Samsung Electronics “evaporated†billions of dollars in market value on several trading days!
Since last Friday, Samsung Electronics' share price has continued to decline from 1.65 million won (9863 yuan) to yesterday's 1474,000 won (8811 yuan). Samsung Electronics Co., Ltd. eventually ended the week with a sharp decline of nearly 7%. This state is considered to be the largest cumulative decline since 2008.
On the 8th of this month, the South Korean media also said with optimism that Samsung's stock price has continued to rise, despite the impact of mobile phone battery explosions and announcement that the market value of recalled products has not shrunk. Then he was beaten and looked hurt.
Recalling 2.5 million handsets means that Samsung will increase recall costs by approximately US$1 billion. In 2016, revenue will be reduced by US$5 billion and annual net profit will be reduced by 5%. However, such a sum of money may not be worth it for Samsung, which is expected to have a net profit of $20.6 billion this year.
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