Note 7 formally recalled by Samsung in the US
In conjunction with Samsung, the US Consumer Product Safety Commission announced a formal recall today after weeks of investigation. The action summarizes the problems with the Note 7's exploding battery and puts in a procedure for consumers to return or replace the device. This news should help Samsung customers who have wanted to confront Samsung with their mixed messages and confusing responses to the Note 7's problems. About 1 million devices have been covered with this formal recall.
The CSPC's recommendation reads "Consumers should immediately stop using and power down the recalled Galaxy Note 7 devices purchased before September 15th, 2016." "Contact the wireless carrier, retail outlet, or Samsung.com where you purchased your device to receive free of charge a new Galaxy Note 7 with a different battery, a refund, or a new replacement device." They have also updated the US incident figures with the number of devices overheating at 92, including 26 reports of burns and 55 reports of property damage.
According to a report in The Wall Street Journal, there have been staggered responses to the recall due to delayed communications with Samsung. The pressure hasn't made it easy for US carriers to replace new devices, and every Note 7 needs to have approval from the CSPC before it can be given to customers. South Korean Note 7 owners were issued a software update where the battery capacity is capped at 60 percent, which is supposed to prevent it from overheating and possible battery ignition. This fix is a stopgap, but it's not available for anyone outside of South Korea just yet.
T-Mobile released a statement in response to the CSPC recall, saying that it expects shipments from Samsung to arrive "no later than September 21st" for replacement Note 7's. For Note 7 customers who are interested in getting a different smartphone, T-Mobile says customers will be given a full refund on the Note 7 and any accessories. They can then put the money towards any device T-Mobile offers. T-Mobile said it will also put off any restocking charges or shipping fees. They are also going to include a $25 credit on their monthly bill. Samsung has previously said that its replacement Note 7's will come in boxes with a blue "S" over the barcode sticker.
AT&T also announced a similar statement saying it will secure inventory of new Note 7's from Samsung no later than September 21st. The support note reads "These devices have been tested by Samsung and approved by the Consumer Product Safety Commission." They told AT&T customers with the original Note 7 they "are strongly encouraged to immediately power down and stop using their device and visit their original place of purchase to exchange that device."
On September 2nd was when Samsung first accepted problems with the Note 7's battery. They issued a recall with a statement telling owners it would "voluntarily replace [users'] current device with a new one over the coming weeks." The absence of clarity, with the follow-up of statements telling owners to power off the phone, has made this situation into a crucial situation for Samsung financially. In its 28 years as a public company, Samsung is currently experiencing its largest ever price decline in their stocks.
Meanwhile, Apteligent, a mobile analytics company, issued a report on the Note 7 earlier this week, saying "usage rate of the phone among existing users has been almost the exact same since the day of the recall." Meaning Note 7 users are ignoring Samsung's recommendations and continuing to use the device. Only 130,000 Note 7's have been returned as part of Samsung exchange program according to Recode. While this formal recall will give Note 7 owners instructions on how to get a placement or return on the device, it is also designed to focus on the dangers of continuing to use the device.
