WTF! Samsung to loose $3billion

Samsung's Galaxy Note7 smartphone may be headed for the trash bin, something that could cost the South Korean company $3 billion and damage to its brand after new reports that a handful of replacement units overheated.

Large shops will find many reasons for making the switch. Businesses of other sizes might have to do.

Early Monday, Samsung said it was "temporarily adjusting the Galaxy Note7 production schedule in order to take further steps to ensure quality and safety matters."
Don't forget The CPSC on Sept. 15 issued a U.S. recall of 1 million original Note7 devices after receiving 92 reports that batteries overheated, including 26 reports of burns and 55 reports of property damage.
Analysts said the latest reports strongly suggest Samsung might want to pack it in on the Note7 and Note7 replacements.
"I think they should move on from the Note7 at this stage," said Carolina Milanesi, an analyst at Creative Strategies. "If they wanted to leave all of this behind, they could potentially come out with a similar device under a different name for the upcoming Note8."
She and other analysts urged Samsung to fully investigate the Note7 fires and give the public full details on what happened and what was done to fix any problems. "Halting production when carriers have stopped selling is the sensible thing to do from a business perspective," Milanesi added.
"Clearly this is a black eye for Samsung," said Jack Gold, an analyst at J. Gold Associates. "Samsung can't let this fester in the minds of its customers. It has to get to the bottom of the problem and soon."
Patrick Moorhead, an analyst at Moor Insights and Strategy, said Samsung did the right thing in urging a global recall of the original Note7 devices on Sept. 2. "They had done a good job with the recall, but now things are really bad," he said Monday.
Moorhead said his estimate of the cost to suspend sales of the Note7, pay for replacements and not be able to re-use any of the components from the original or replacement units will be $2 billion to $3 billion. That doesn't include the hit on the Samsung brand and its other smartphones.
"I've never seen in my 26 years a replacement product for a recalled product get recalled," Moorhead said.
He said if the replacement units are found to have caught fire, Samsung needs to stop production and sales of all Note7s and focus on selling other devices for the holidays, like the Galaxy S7 and Galaxy S7 Edge. "Then, they need to regroup with the Note8 around the Mobile World Congress timeframe," Moorhead said.
The public might be forgiving in the long run, if Samsung proceeds carefully. The public is willing to forgive and forget; analysts noted that air bags have exploded in a number of vehicles, actually killing some occupants, but buyers have still bought updated models of the same car brands with different air bags.
As for what may have gone wrong, Moorhead said the only insight he has is that with the original Note7 had one of two batteries installed -- one from a Chinese maker, the other made by Samsung. The Samsung batteries were deemed defective, so replacement units used batteries from the Chinese maker. The CPSC approved Samsung's planned fix, he said, although the agency has not formally disclosed that much detail.
If the Chinese maker's batteries are causing replacement units to catch fire or overheat, there is likely something wrong with the chemistry of the fast-charge mechanism, Moorhead said. "There may be a mismatch between the fast charging and the phone's ability to take all that energy coming in, which changes the chemistry and creates a fire," he said.
Other theories have circulated, including that the original batteries were slightly too large for the Note7 body. Samsung has not commented on any of the theories.