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Following on from last week’s rumours of technical malfunction with Samsung’s new Note 7 and reports of the handset exploding, Samsung has issued a global recall of the Note 7.
Samsung Australia has since detailed how the recall will work. The company will be offering customers their choice of a refund, repair or replacement.
The issue, caused by the new battery designed used by the smartphone, caused some units to overheat and eventually combust.
There have been 35 reported incidents of this since the device’s launch.
Customers who purchased the Note7 outright or on a plan are expected to be contacted by Samsung over the following days to begin the process.
Notably, even Note7’s purchased via online resellers like eBay will be covered.
Samsung is advising customer anxious about continuing to use their Note 7 in the leadup to the call to contact the company via their Samsung kiosks and Experience Stores to arrange for a loan-unit.
According to Credit Suisse, Daishin Securities and Pelham Smithers Associates, the recall is expected to cost Samsung around $US1 billion.
Koh Dong Jin, the head of Samsung’s smartphone business, said at Friday’s press conference in Seoul that it was a “heartbreaking amount”.
The potential damage to Samsung’s reputation is a little harder to gauge.
While they’re likely to win some points for going above and beyond on customer service, the perception as a company that produces quality tech is likely going to take a hit.
If nothing else, it certainly takes the wind out of what was otherwise a hugely successful product launch.
The Note7 initially outsold the Note5 twice over in the two weeks since its launch, becoming the company’s most successful handset to date.
