“In a potentially damaging episode, Samsung announced on Friday that it would recall its Galaxy Note 7 model after discovering a flaw in the battery cell that could result in fires,” Paul Mozur and Su-Hyun Lee report for The New York Times. “The company will replace 2.5 million phones sent to stores and consumers, in one of the industry’s largest recalls.”
“The recall puts Samsung, which has been trying to match the success of the Apple iPhone, in a precarious position,” Mozur and Lee report. “Battery fires threaten to undermine Samsung’s efforts, giving an edge to Apple. The recall comes just days before Apple is expected to unveil the latest version of its iPhone.”
“Along with the expense of fixing the phones, Samsung could face lost sales if consumers grow wary of its products. Samsung said it expected that manufacturing replacement phones would take two weeks. Consumers who have already bought the phones will receive replacements before new phones go on sale, the company said. Samsung did not indicate the cost of the recall,” Mozur and Lee report. “The recall is a major blow to Samsung.”
“The company faces pressures across its product line, with Apple on the high end and new Chinese brands on the lower end,” Mozur and Lee report. “Apple is set to show off its latest iPhone on Sept. 7. With the new iPhone, Apple is expected to make major upgrades to both the hardware and software, as it generally does every two years.”
