Samsung delays shipments of Galaxy Note 7

LATE: Samsung, which is conducting more quality control testing for the Galaxy Note 7, is showcasing its products at the IFA 2016 international consumer electronics fair in Berlin


    Sep 02, 2016

    Samsung delays shipments of Galaxy Note 7


    SAMSUNG Electronics said on Wednesday shipments of the Galaxy Note 7 smartphone are being delayed as the firm conducts additional quality control testing for the premium device.

    It also said shipments to South Korea's top three carriers - SK Telecom, LG Uplus and KT - had been halted.

    The firm did not elaborate on what potential problems it was testing for or whether shipments to other countries were being affected.

    South Korean media reports have said some users have claimed that the battery exploded.

    Quality control problems, if confirmed, could deal a major blow to the world's top smartphone maker.

    It was counting on the Note 7 to help maintain sales momentum in the second half when competition is expected to intensify.

    The phone, which launched in South Korea and other markets on Aug 19, retails at 988,900 won (S$1,200) in South Korea.

    Production problems for the curved displays for the Galaxy S6 edge phone resulted in disappointing sales last year, and Samsung risks a repeat this year if it cannot address the Note 7 supply problems quickly.

    Apple is expected to unveil its new phones next week.

    Hyundai Securities said in a report released yesterday that the Note 7's problems appeared to be related to modules or parts, and that such "malfunctions" should be resolved quickly.

    "Such problems can be addressed by replacing parts and modules and changing the design of circuits, so supply problems for the Galaxy Note 7 should ease within a matter of few weeks," the brokerage noted.

    Samsung has said demand for the new phone is far exceeding supply, creating a shortage and forcing it to push back the launch in some markets.

    Samsung's other premium smartphone models that launched in March, the Galaxy S7 and S7 edge, have been huge hits with customers and lifted earnings in the first half.