Samsung halts sales of Galaxy Note 7 over exploding battery concerns, retailers stop selling phones
By David Taylor, wires
Updated about 3 hours ago
Photo: There are concerns the Samsung Galaxy Note 7 is at risk of catching fire while charging. (Supplied: Samsung) Map: Korea, Republic Of
Samsung has confirmed it will halt the sales of its Galaxy Note 7 smartphones and prepare replacement devices for phones already sold after multiple reports of exploding batteries.
Some of Australia's biggest phone retailers stopped selling the phone this afternoon, saying the reported problems were being investigated.
Samsung, in a statement, said it would take about two weeks to prepare replacement devices for the phones already sold.
The high-end gadget was launched just weeks ago, but users have complained that a battery fault has caused some phones to explode or catch fire while being charged.
The company said it had found 35 cases of problems with the smartphone, and that concerned customers should return the phone to the outlet where they purchased it.
JB Hi-Fi, Optus and Telstra earlier said they would remove the phones from shelves across Australia
Unclear how many phones may have been affected
An Optus spokesperson told the ABC the telecommunications provider had paused sales of the Samsung Galaxy Note 7 on Friday, pending the completion of an investigation by Samsung.
In a statement, Optus said: "Any customers with concerns about their Samsung Galaxy Note 7 handset can visit their nearest Optus store to discuss their options."
Telstra was also investigating the problem with Galaxy Note 7 phones.
"We are talking to Samsung to understand more about the reports and as a precaution we have paused Galaxy Note 7 sales," a Telstra spokesperson said.
"We will contact existing owners directly if we learn there is an issue affecting their phones."
At this stage it is unclear how many phones have been affected by the problem.
'They need to nip it in the bud right now'
While analysts expect the Note 7 problems to be resolved quickly, ongoing major problems could derail Samsung's mobile recovery after a string of product successes had reversed the smartphone leader's declining market share.
The South Korean firm has pinned its hopes on the Note 7 to maintain strong sales momentum in the second half against stiffening competition from the likes of Apple Inc, which is expected to release its latest iPhone next week.
"They need to nip it in the bud right now," IDC analyst Bryan Ma said.
"The last thing they want is for memes to be spreading on the internet associating the Samsung name with an exploding battery or injury."
Investors stripped about $7 billion off Samsung Electronics' market value in response to the shipment delays on Thursday, but sentiment appeared to have recovered in Friday trading.
The shares rose 0.6 per cent compared with a 0.3 per cent gain for the broader market.