[THE INVESTOR] Samsung Electronics is considering recalling all Galaxy Note 7 smartphones sold globally after a series of explosion reports, possibly due to faulty batteries.

Since its launch on Aug. 19, some 400,000 preorders have been made in Korea alone. About 1 million units are estimated to have been sold globally.

A detailed recall plan is expected to be announced over the weekend or early next week. Earlier news reports said the company was considering free battery exchange rather than refunds or exchange with a new phone. 



“We have confirmed that batteries caused the recent explosions,” a Samsung officials was quoted as saying by a local news outlet. “The faulty phones make up less than 0.1 percent of total shipments, but we are seeking measures to satisfy our customers.”

The official added that the company was also discussing the recall plan with global partners, including US telecom carrier Verizon.

Samsung, which has suspended the phone’s shipments since early this week, has tentatively concluded that the defective batteries supplied by Samsung SDI have caused the accidents.

The battery supplier produces the battery cell, while outsourcing the battery pack production to other firms.

Industry watchers say the recent battery woes could deal a blow to Samsung’s upbeat earnings this year. Following the success of the flagship Galaxy S7 in the first half of the year, the firm has been pinning high hopes on the big-screen Note phone to take on Apple’s upcoming iPhone launch.

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