Samsung to delay new phone launch

Samsung yesterday indicated that its latest flagship Galaxy S smartphone could be delayed as it pledged to enhance product safety following an investigation into the cause of fires in its premium Note 7 devices.

Wrapping up its months-long probe, the world’s top smartphone maker said faulty batteries from two suppliers were to blame for a product failure that wiped $5.3bn (€4.9bn) off its operating profit.

Samsung mobile chief Koh Dong-jin said procedures had been put in place to avoid a repeat of the fires as the South Korean firm prepares to launch the Galaxy S8, its first premium handset since the Note 7’s demise.

“The lessons of this incident are deeply reflected in our culture and process,” Mr Koh told reporters at a press briefing.

“Samsung Electronics will be working hard to regain consumer trust.”

Koh said the Galaxy S8 would not be unveiled at the Mobile World Congress trade show in Barcelona beginning on February 27, the traditional forum for Galaxy S series launches.

He did not comment on when the company plans to launch the handset, though analysts expect it to start selling by April.

Investors have said Samsung needs to reassure consumers that it is on top of the Note 7 problem and can be trusted to fix it.

Samsung’s reputation took a hammering after it announced a recall of fire-prone Note 7s, only for reports to emerge that replacement devices also caught fire.

Images of melted Samsung devices spread on social media and airlines banned travellers from carrying them on flights.

The handset, Samsung’s answer to Apple’s iPhones, was withdrawn from sale in October, less than two months after its launch, in one of the biggest failures in tech history.

Samsung also said yesterday it has not decided whether to reuse parts in the recovered Note 7s or resell any recalled phones.

A source said reselling some Note 7s as refurbished phones is an option. Samsung said it has recovered 96% of the 3.06m Note 7s sold to consumers.

Investigations by internal and independent experts ruled out problems with the Note 7’s hardware and software.

Instead, they said the batteries, which came from two suppliers, featured different manufacturing defects or design flaws that caused them to short-circuit.

Samsung said it accepted responsibility and would not take legal action against suppliers.

The company touted longer battery life and fast charging as major improvements when it launched the Note 7.

Among other measures to boost safety, Samsung said it had implemented an eight-point battery check system to avoid any such problems going unnoticed again.

Samsung shares ended up 2.3% in a flat wider market.

Analysts said the rise was mainly due to a healthy outlook for makers of tech components such as memory chips but also boosted by hopes the firm will be able to put the Note 7 fiasco behind it.

Reuters