14 DAY TRIAL // The news of Samsung's recall of its latest flagship, the Galaxy Note 7, has certainly made waves in the smartphone market, and it's expected to have serious implications for the company. Reportedly, 70% of Galaxy Note 7 devices came with batteries produced by Samsung SDI while the rest of 30% packed batteries made by Chinese company ATL.
This is mainly the reason why Samsung didn't halt sales of the Galaxy Note 7 in China, since the issue was found with devices that carried batteries made by Samsung SDI. The South Korean giant was forced to recall over 2 million Galaxy Note 7 units after reports that batteries simply exploded while charging. Some analysts say that the recall will cause a $730 million cut in operating profits, and the company's image will be temporarily affected.
The company has reportedly decided to temporarily stop using batteries made by Samsung SDI in the Galaxy Note 7, according to Korea Herald. The company is expected to increase the order for batteries from Chinese maker ATL for its latest flagship.
Batteries made in South Korea and Vietnam have a high chance of being faulty
Samsung SDI started making non-removable batteries in 2014 but didn't manage to offer the required number of units for the Galaxy S6 and lost orders to competitors like ATL and LG Chemicals. Samsung SDI could bear the expense for most of the battery parts involved in the recall of an estimated 2.5 million Note 7 units, which means that the company's operating loss could reach $16 million, according to the same report.
Considering that ATL batteries are manufactured in China while Samsung SDI battery units are made in South Korea or Vietnam, one rule of thumb would be for users to check the manufacturing location of batteries in their Galaxy Note 7. This can be checked on the back of the device or in the Phone info page in the Settings app.
If the phrase “Made in Vietnam” or “Made in South Korea” appears, they should definitely think twice before charging the phone. Of course, all Galaxy Note 7 owners should take advantage of the recall and return the devices, just to be on the safe side.