Samsung Electronics Co yesterday said it would resume selling its Galaxy Note 7 smartphones to South Korean customers from Sept. 28, as it rushes to complete a costly recall and salvage second-half sales for the device.
Analysts have cut their earnings expectations for the South Korean technology giant after it announced on Sept. 2 a recall of Note 7 smartphones from 10 markets due to faulty batteries that caused devices to catch fire.
Samsung said it has sold 2.5 million phones with faulty batteries.
The recall is unprecedented in scale for the world’s top smartphone maker, which prides itself on its manufacturing prowess.
Some analysts said the recall might cost Samsung up to US$5 billion in revenue this year and would damage the company’s reputation.
A Samsung spokeswoman said the schedule for restarting sales for the device elsewhere, including the US, depend on circumstances for individual markets.
The firm has said new sales in Australia would resume early next month.
Samsung has been pushing to salvage sales during the busy shopping season in key markets in the fourth quarter.
The firm tapped China’s Amperex Technology Ltd (ATL, 新能源科技) as the main battery supplier for the Note 7, a person familiar with the matter said.
A second person said that Samsung SDI Co made faulty batteries that triggered the recall, but the company’s representatives could not be immediately reached for comment.
Although the initial recall announcement was well-received, analysts said Samsung’s brand image was subsequently tarnished as aviation authorities and airlines began issuing bans or advisories against using or charging the Note 7 on airplanes.
Samsung formally announced the recall of about 1 million Note 7 devices on Thursday in cooperation with the US Consumer Product Safety Commission, but the commission criticized the company for trying to initiate a recall on its own instead of following proper reporting procedures.
Samsung has said it would resume sales in the affected markets once enough replacement devices have been issued. It is to start issuing replacement devices in South Korea on Monday, while US replacements are to start on Sept. 21.
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