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Unless you’ve been living under a rock for the last week, you have probably heard about the debacle surrounding Samsung’s exploding Galaxy Note 7 and the global recall that took place. The company is working to figure out what caused the battery cells to go bad, and it seems they may have found the source.
Samsung SDI is the affiliate company that produced the batteries for all of the Galaxy Note 7’s (other than the Chinese variant), and it seems there were issues with the batteries that were produced for the devices. As a result, Samsung has stated they will be “temporarily stop using Samsung SDI’s battery for the Galaxy Note 7”.
SDI has been developing non-removable batteries since 2014, but due to competition from other companies they were not able to supply them for Samsung devices from last year. The continued development gave SDI the opportunity to supply over 70% of batteries for the Galaxy Note 7, which did not turn out as planned.
Due to the global recall, it’s being reported that SDI will lose $16 million, and has seen its stock drop 2.76% since the recall was announced. Samsung itself is predicted to spend approximately $1.36 million by being forced to recall the 2.5 million affected devices.
In addition to dealing with the recall and replacement of Samsung’s biggest launch of the year, Oculus has reached out to users warning against using the new Samsung Gear VR. The company launched a new Gear VR alongside the Galaxy Note 7 but does not recommend using the Virtual Reality headset until the Galaxy Note 7 has been replaced.
Please note: Samsung has issued a product exchange program for all Note7 devices due to battery issues. Don’t use your Note7 with Gear VR until you get your replacement. Contact Samsung directly with any questions.
This is still a developing story but it seems that Samsung is attempting to act swiftly and make sure that all of its affected customers are taken care of. Currently, you can not purchase the Galaxy Note 7 from any US carriers with each carrier offering to either replace the device or accept a full return. Samsung itself will be replacing the devices in the coming weeks, and is offering the Galaxy S7 or Galaxy S7 Edge as a temporary replacement until the new Galaxy Note 7’s are manufactured.
TLDR; Don’t take a chance and just swap out your Galaxy Note 7.
[Korea Herald | Oculus]
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