NEW YORK: On Friday, a Safety agency of US Government requested all consumers to stop using new smartphone of Samsung Galaxy Note 7 phones. These smartphones are prone to catch fire and top airlines globally banned the phone to use during flights.
South Korean Company – Samsung Electronics Co Ltd said that it was working with the agency and asked customers to immediately turn in their Note 7 phones. The company recall the new handset from the markets, including South Korea and the United States, and it said it was expediting shipments of replacement phones to customers in the United States.
Some analysts say that after accounting for expenses from the recall process, the recall could cost Samsung nearly $5 billion in revenue.
The company said that some 2.5 million of the new devices have been sold worldwide. On Friday, Its shares closed down 3.9 percent.
Samsung said that the users in the United States can exchange their phones for one of the several models of the galaxy and receive a gift card worth US $25.
Samsung, in a separate statement on Saturday, asked consumers in South Korea not to use of their Galaxy Note 7 phones and visit one of the service centers of the company for the recall process.
The product liability expert and CEO of Real World Forensic Engineering – Jahan Rasty said that the cost of the recall is going to be astronomical.
He said that they have to compensate people and fix the problem. They give them a new revised version of Galaxy Note 7 that does not have the same design or manufacturing defect.
Aviation authorities and airlines from North America to Asia and Europe have issued guidance or ban on the phones. On Thursday, the US Federal Aviation Administration said that travelers should not use or charge the phone while in the air, or stow them in checked luggage.
The three largest airlines of the world by passenger traffic – American, Delta and United – to start warning passengers at the entry gate and on board aircraft to keep the phones switched off until they deplane.
Companies ranging from Qantas Airways Ltd and Singapore Airlines Ltd to Air France KLM SA have instituted similar bans on the device.