Samsung Electronics probe finds battery was main cause of Note 7 fires: source

Sun Jan 15, 2017 10:03pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Se Young Lee

SEOUL (Reuters) - A Samsung Electronics Co Ltd (005930.KS: Quote) investigation into what caused some Galaxy Note 7 smartphones to catch fire has concluded that the battery was the main reason, a person familiar with the matter told Reuters on Monday.

The world's biggest smartphone maker is seeking to put behind it one of the biggest product safety failures in tech history as it prepares to launch the Galaxy S8, one of its flagship phones, sometime in the first half of this year.

Investors and analysts say it is critical for Samsung to provide a convincing and detailed explanation about what went wrong with the Note 7 and how it will prevent such problems from recurring if it is to regain consumer trust.

"They've got to make sure they come clean and they've got to reassure buyers as to why this won't happen again," said Bryan Ma, Singapore-based analyst for researcher IDC.

The results of the investigation will likely be announced on Jan. 23, a day before it announces detailed fourth-quarter earnings results, said the person, who was not authorized to speak publicly on the matter and declined to be identified.

Koh Dong-jin, head of Samsung's mobile business, will likely announce the results as well as new measures the firm is taking to prevent similar problems in future devices, the person said.

A Samsung spokesman declined to comment.

Samsung initially announced a recall of some 2.5 million Note 7 phones in September and identified the cause of the fire as a manufacturing process problem at one of its suppliers, later identified as affiliate Samsung SDI Co Ltd 006400.KS.   Continued...

 
An exchanged Samsung Electronics' Galaxy Note 7 is seen at company's headquarters in Seoul, South Korea, October 13, 2016.   REUTERS/Kim Hong-Ji