April 26, 2024

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[THE INVESTOR] Samsung Electronics has suspended shipments of its latest smartphone Galaxy Note 7 to local telecom carriers after a series of reports on the phone’s explosion, a local news outlet reported on Aug. 31.

According to Yonhap News Agency, the Korean tech giant has suspended the phone’s shipments since early this week even though the exact cause of the decision has not yet been confirmed. 

Samsung Electronics mobile chief Koh Dong-jin.

“Samsung has stopped supplying the phones even though preorders have not yet been shipped,” an official of a telecom carrier was quoted as saying.
“It is unclear whether the suspension is because of production constraints or a probe into the recent explosions.”

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Since its official launch on Aug. 19, the large-screen Note has sold out quickly, with preorders exceeding 400,000 units, more than double the figure for the flagship Galaxy S7 launched in March.

But more recently there have been several reports in Korea and overseas claiming that the phone exploded while charging. No injuries from the accidents have been reported.

Sources said Samsung has also started its own investigations into the cases after collecting the phones from the customers. The company is expected to announce the results of the investigation soon.

By Lee Ji-yoon (jylee@heraldcorp.com)