Channel Partners: Samsung Will Recover From Galaxy Note7 Halt, Citing History Of HP, Dell Battery Fires


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Samsung Galaxy Note 7

Samsung on Tuesday officially said it would stop production of its Galaxy Note7 smartphone after several reported incidents where the phone, and even some of the replacement units the company sent out, began smoking or catching fire.

"For the benefit of consumers' safety, we stopped sales and exchanges of the Galaxy Note7 and have consequently decided to stop production," a Samsung spokesperson wrote in an email to CRN.

The production halt gives competitors like Apple or the newly-released Google Pixel an opportunity to rack up extra sales.

However, channel partners, recalling earlier episodes of mobile PCs smoking or burning, expect Samsung to recover eventually.

[Related: Reports: Samsung Stops Production Of Galaxy Note 7]

Bob Venero, CEO of Holbrook, N.Y.-based solution provider Future Tech, which was recently authorized as a Samsung Galaxy smartphone partner, said he is confident that Samsung will bounce back stronger than ever.

"This is definitely going to have a large impact on Samsung's dominant smartphone market share," Venero told CRN. "But this is a $235 billion company that has proven that it can bounce back from adversity and continue to deliver products and provide great support with its partners in the markets they compete in."

The Samsung Galaxy Note7 was unveiled in early August to much fanfare as the company's newest weapon in its war of mobile device domination with arch-rival Apple. Shipments started August 19.

However, Samsung on September 2 halted sales of the Galaxy Note7, citing a battery issue as the reason several units caught fire. Some airlines banned users from activating a Samsung Galaxy Note7 on their flights. 

The U.S. Consumer Product Safety Commission on September 15 issued an official recall notice on all Note7 devices sold before that date because "the lithium-ion battery in the Galaxy Note7 smartphones can overheat and catch fire, posing a serious burn hazard to consumers."

At the time, the U.S. Consumer Product Safety Commission said Samsung had received 92 reports of overheating batteries in the U.S. which led to 26 reports of burns and 55 reports of property damage.

But reports surfaced Monday that Samsung halted production of the Galaxy Note7 after some units sent to customers to replace their recalled devices also caused fires.

The Wall Street Journal and other media outlets on Tuesday reported that Samsung has decided to discontinue production of the Galaxy Note7 permanently. The Journal reported that Samsung's potential losses related to the recall and production halt could be as high as $2.8 billion in the last calendar quarter of 2016.

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