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Category: Business, Economics and Finance / Science and Technology / Mobile Phones

Retailers stop selling Samsung Galaxy Note 7 over fire risk concerns

Friday, 2 Sep 2016 15:27:29

There are concerns the Samsung Galaxy Note 7 is at risk of catching fire while charging. (Supplied: Samsung)

JB Hi-Fi says it is removing all Samsung Galaxy Note 7 phones from its shelves across Australia amid reports of an imminent recall.

There are concerns the phone is at risk of catching fire while charging.

Telstra also said it had stopped selling the phones while the safety issue was investigated, and Samsung's official website said the phones were unavailable.

Korean media is reporting Samsung Electronics Co Ltd will announce a recall at a press briefing this evening.

JB Hi-Fi said it was not aware of any product recall and that an investigation was underway into the cause of the product malfunction.

The tech giant declined to comment on any recall plan for the high-end gadget, which has been the subject of several reported complaints overseas of the phones catching fire.

Samsung said in a statement it was "conducting a thorough inspection" with its partners on the Note 7 and would share its findings as soon as possible.

'They need to nip it in the bud right now'

While analysts expect the Note 7 problems to be resolved quickly, ongoing major problems could derail Samsung's mobile recovery after a string of product successes had reversed the smartphone leader's declining market share.

The South Korean firm has pinned its hopes on the Note 7 to maintain strong sales momentum in the second half against stiffening competition from the likes of Apple Inc, which is expected to release its latest iPhone next week.

"They need to nip it in the bud right now," IDC analyst Bryan Ma said.

"The last thing they want is for memes to be spreading on the internet associating the Samsung name with an exploding battery or injury."

On Wednesday Samsung said it had halted supply of the new phone to the top three South Korean carriers and that shipments were being delayed as it conducted additional quality testing.

It did not elaborate on any problems it may have found with the gadget, which was launched in South Korea and other markets on August 19 and has been generally well-received by critics.

Investors stripped about $7 billion off Samsung Electronics' market value in response to the shipment delays on Thursday, but sentiment appeared to have recovered in Friday trading.

The shares rose 0.6 per cent compared with a 0.3 per cent gain for the broader market.

ABC/Reuters

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