Samsung (KRX:005930) Electronics of South Korea is opening booths at airports around the world to give users of the Galaxy Note 7 a chance to exchange their phones. All data will be transferred. They can also ask for a refund if they want.
The Galaxy Note 7 has recently been banned by airline companies worldwide after a smartphone exploded onboard a domestic flight in the United States, causing smoke and an evacuation. There have been reports of the phone exploding elsewhere as well. The US Federal Aviation Authority issued a notification, saying that it was very risky to fly with any device that can explode.
Airline Companies Ban the Note 7
Since then, the Galaxy Note 7 has been banned by a number of airlines, like British Airways, Lufthansa, Cathay Pacific, Alitalia, Qantas, Air New Zealand, Air Berlin, Jetstar, Virgin, Air Asia, Singapore Airlines, Japan Airlines, Nippon Airways and many others, including the carriers of South Korea as well.
The smartphone was banned in both checked baggage and cabin baggage. Authorities have been allowed to fine people who are caught flying with the phone.
Meanwhile, many travelers are unwilling to give up their Note 7 phones, saying that they haven’t seen the notice that they cannot fly with it. The exchange booths will in implementing the ban and make sure that nobody can board the flights with this banned device.
Samsung (KRX:005930) has revealed that the booths have been opened at terminals in South Korea and Australia for now. But they are going to be opened soon at important airports in the United Kingdom and elsewhere.
Samsung Stops Production
The business has become wary of negative publicity it is receiving since the explosion onboard the flight and subsequent ban. Samsung is still struggling to deal with its fallout. They had to first stop selling the phone, and eventually halt production till the investigation to find out what went wrong is over. The company also slashed their profit forecasts for the third quarter by a third. Instead of the projected $4.6 billion, it is now likely to be £3.8 billion.
Analysts have said that the company will have a pay a big price for the debacle, and that, there is a chance Samsung may not come out with any future Galaxy series products again. So it could very well be the end of the road for the series.