Samsung May Have To Recall The Note 7…. Again

Well, the PR disaster that is the Samsung Galaxy Note 7 keeps getting worse for Samsung. The Federal Aviation Administration and the Consumer Product Safety Commission are investigating Wednesday’s incident when a passenger’s phone emitted smoke on a Southwest Airlines plane readying for departure from Louisville, Kentucky. Here’s the details via Bloomberg:

“If it’s the fixed phone and it started to smoke in his pocket, I’m going to guess there’ll be another recall,” said Pamela Gilbert, a former executive director of the consumer agency. “That just doesn’t sound right.” Samsung has been engulfed in crisis since the Note 7 smartphones began to burst into flames just days after hitting the market in August. The Suwon, South Korea-based company announced last month that it would replace all 2.5 million phones sold globally at that point. Samsung said it had uncovered the cause of the battery fires and that it was certain new phones wouldn’t have the same flaws. The first indications of the existing recall’s financial impact could be seen Friday with the company’s release of earnings that rose at the slowest pace in five quarters. Operating income increased just 5.5 percent to 7.8 trillion won ($7 billion) in the three months ended Sept. 30.

If a second recall happens, it would pretty much put the final nail in the Note 7’s coffin. Not only that, Samsung itself would likely take some significant hits at a time when it can’t afford to as Apple and the iPhone 7 is poised to take Samsung’s breakfast, lunch and dinner. Samsung for its sake better hope that it doesn’t have to go there.


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