Samsung has although made a global Galaxy Note 7 recall, where the sales has been halted shipments after acknowledging the battery exploding issue. The faulty battery packs has caused some Samsung Galaxy Note 7 units explode while charging, and those cells were manufactured by the South Korean company’s own Samsung SDI subsidiary. Now the company is planning to ditch those batteries inside the Galaxy Note 7 units.
New reports have surfaced suggesting that Samsung has now decided to stop using Samsung SDI’s batteries in the Note 7 phablet, which were supplied with 70-percent of those batteries that is found on the smartphones and the other 30% came from a Chinese manufacturer named Amperex Technology (Hong Kong-based supplier), which is a unit of japan’s TDK Corp, which made it clear that it only supplied batteries for the units sold in to the Chinese market. And the only region unaffected by the recall.
There are chances that will lead Samsung to source more batteries from ATL for their rest of the 70% Galaxy Note 7 devices. With that said, Koh Dong Jin, Samsung smartphone business head also mentioned that the recall will cost the company a heartbreaking amount, with analysts saying that the figure could be around $1 billion.
To improve profit margins, Samsung SDI build developing of non-removable batteries at the end of 2014, but supplied a smaller amount of batteries to Samsung Galaxy S6 and S6 Edge last year. The same subsidiary could lose somewhere around 18 billion won (US$ 16 million) worth of revenue in the third quarter due to the cost of replacing battery units.
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