Technology - - Jan 02,2017
Samsung Electronics is set to announce the results of an investigation that it carried out to detect what caused some its Galaxy Note 7 smartphones to catch fire.
The South Korean tech giant said in October that it was examining all the aspects of the phone, considering that there may be a combination of various defects that might be causing the combustion. At that time, Samsung had very diligently recalled and replaced the handsets of the affected customers.
In one of the world’s costliest product safety failure in tech history, Samsung warned of a $5.1 billion damage to its operating profit over the next three quarters following its decision to permanently halt Galaxy Note 7 sales in October. Among the theories that spurred, the most popular was that the device’s faulty battery caused the explosions. However, Samsung never confirmed any such theories.
Galaxy Note 7 was officially banned by the Federal Aviation Administration and many other such organizations, and users are still not allowed to carry this phone on flight.
Investors and analysts have said that it's important for Samsung to publically announce the root cause of the explosions to maintain consumer loyalty and avoid causing any such blunder in the future.
Samsung’s forthcoming flagship smartphone, Galaxy S8 would be released in the coming months and the market is already filled with various speculations. Rumors are that Galaxy 8 will be manufactured under the Y-OCTA technology process, the same that was used in the manufacturing of Note 7.
However, in the latest shopping season of December in the US, it was found that brand loyalty to Samsung Electronics was greater than last year despite the Note 7 incident. The proportion of Samsung products sold during the shopping season jumped by 1 percent from last year.