Samsung Electronics (KRX:005930) of South Korea has been in the docks ever since their Galaxy Note 7 smartphone started exploding in September. The company had to discontinue its production with reports coming in thick and fast. Samsung had to issue replacements after the device was banned on flights around the world. Many consumers began complaining that their washing machines were exploding too.
Samsung’s rivals LG, also of Korea, began marketing, saying that their products were not exploding. The company had a pay a big loss for all this. Revenue targets were brought down sharply. The incident was a huge PR loss as well.
Samsung started an investigation to find out what really caused these explosions, though early reports indicated that it was a production error in the battery cells. There were other theories too, but the company did not acknowledge any of them. Batteries are often the ignition point, but an explosion can be caused by many factors.
A new round of investigation was ordered again on November 11. A company official said, “We are considering all possibilities to find out the exact cause of the accidents”.
The Full Report of Investigation to Be Out Soon
On Tuesday, it was disclosed that the Korean electronics giant is almost done with the detailed investigation. The probe includes both safety authorities in the United States and South Korea and other experts.
It was also disclosed that Samsung Electronics is going to officially reveal the result of this investigation soon. No official date has been mentioned yet, but according to some reports, the full disclosure might happen before 2016 ends. So any day now, within the next two-three weeks, we might finally get to learn what happened to this smartphone.
The Investigation Result May Seal Samsung’s Fate
A lot depends on the results of this investigation for the future of the company and the Galaxy Note series. In fact, some experts had even said that the business was hit so hard with these explosions, the eventual recall, and production stoppage that the Galaxy Note smartphones may not be produced again.
There is a rumor going around that Samsung Electronics (KRX:005930) is thinking of selling refurbished Galaxy Note 7 phones once the issue is identified for sure and fixed. That will also depend on what the investigation discloses.
Most observers agree that the sooner Samsung comes out with this report, the better it will be for everyone. Samsung can then finally move on from the fiasco.