[THE INVESTOR] Samsung Electronics is considering recalling its latest smartphone Galaxy Note 7 amid a series of reports on the phone’s explosion possibly due to faulty batteries.

According to Chosun Ilbo on Sept. 1, the company plans to offer free battery exchange for all customers but is said not to be considering a refund or exchange with a new phone.  

Since the launch on Aug. 19, more than 400,000 units have been sold in Korea alone. 



The company has already suspended shipment of the phones to local telecom carriers since early this week.

Over the past weeks, there have been several reports of the phone’s explosion while charging, not just in Korea but also overseas. No injuries have been reported. 

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Samsung has tentatively concluded that faulty batteries are the main cause of the accidents. Samsung SDI, the battery-making unit of Samsung Group, supplies batteries for the phone, including those imported from China.

Despite the recent battery woes, Samsung has decided to go ahead with the phone’s launch event in China that is scheduled to be held at 11 p.m. on Sept. 1.

By Lee Ji-yoon (jylee@heraldcorp.com)