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Samsung reducing Galaxy Note 7 production

[THE INVESTOR] Samsung Electronics said on Oct. 10 that it is now adjusting the production volume of its Galaxy Note 7 “in order to conduct detailed inspections and improve quality control.”

The announcement came on the heels of news reports that Samsung has reportedly halted the operation of its manufacturing facilities for the bigger-screen Note phone in Korea and Vietnam.




Over the weekend, US telecom carriers including AT&T and T-Mobile have halted the phone sales amid the ongoing battery fiasco of the handset.
They have also stopped exchanging old models with a replacement due to safety issues, offering other Samsung phones or those from different manufacturers. 

The suspended sales of the phone came after a series of alleged fires and explosions involving replacement phones with a new battery, including one that occurred on a Southwest Airline plane in Louisville last week.

Those alleged fire and explosion cases are still under investigation, but the mobile carriers have taken preemptive measures to prevent the troubling battery issue from getting worse.

A video footage of a Note 7 with billowing smoke at a Burger King fast food restaurant in Songdo, Incheon, went viral over the weekend. 

It has not been verified if the fire was caused by the Note 7 and the handset was a replacement model.

Local stock brokerage NH Investment and Securities forecast that the opportunity cost caused by the possible sales suspension of the Galaxy Note 7 could reach 700 billion won (US$630 million).

By Kim Young-won (wone0102@heraldcorp.com.)
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