Galaxy Note 7 recall costs Samsung around $1 bn

Tesla HP Compaq and now Samsung have all had to deal with lithium-ion battery problems

Though less than 0.1% of the 2.5 million Galaxy Note 7 units sold worldwide were affected by the battery problem that caused explosions, the Korean company has chose to recall all the 2.5 million units and give customers a new one.

With a large number of US consumers still purchasing their phones from the country's top four major mobile service providers, there has been a constant demand to have the recalled Samsung Galaxy Note 7 returned or exchanged for another device.

Samsung is recalling and replacing up to 2.5 million Note 7 devices, with almost billion dollar cost to the company.

Tech giant Samsung Electronics' decision to globally recall its Galaxy Note 7 is expected to prove quite expensive for the company.

KitGuru Says: Things appeared to be going well for the Galaxy Note 7 sales-wise until this hit.

Apart from the customers possibly getting hurt, this recall is critical to Samsung, as the leading competitor, Apple is launching its newest phone model iPhone7.

Customers can either return Galaxy Note S7 owners to the place of purchase, or call the company on 1300 362 603.

He also explained that people would rather buy a iPhone for the same price of a "tainted imaged" Note 7. "Courtesy devices will become available from this Wednesday (September 7, 2016)", added Fink.

Market analysts predict Samsung SDI might have to face a tough time in the second half of the year if the global recall begins.

Samsung Electronics Australia is today taking the proactive and voluntary step to recall 51,060 Galaxy Note7 smartphones. The said phone unit was on sale weeks ago, and nearly 2.5 million units were out. The company admitted that it is a faulty battery issue. Prior to the recall, about 70 percent of Note 7s were powered by Samsung SDI batteries, which were responsible for the 30 or so phones that went up in flames.

"There was a tiny problem in the manufacturing process, so it was very hard to figure out", the President of Samsung's mobile business Koh Dong-jin said about the recall which is set to cost Samsung more than $US 1 billion.