Samsung Announcing Note7 Probe Results Sunday, Expected to Blame Battery Size & Manufacturing

Samsung is expected to announce on Sunday evening (US time) the final results of its investigation into the Galaxy Note7, which was recalled shortly after its launch when numerous handsets reportedly burst into flame. The company will hold a press conference at 8pm Eastern to formally announce the cause of the phone’s overheating issues.

According to The Wall Street Journal, it is expected that the Korean tech giant will blame the battery’s size & form factor and associated manufacturing issues for the incidents. Samsung recalled 2.5 million handsets, taking such drastic steps as asking carriers to push phone updates that bricked users’ phones. The Note7 is expected to cost the company around $5 billion, between recall expenses and legal fees.

Samsung’s report on Monday will conclude that the issue with the batteries from Samsung SDI was an irregularly sized battery that didn’t fit properly in the phone, according to the people, who said that the incongruence caused the overheating. In the Galaxy Note 7 phones carrying batteries made by ATL, the flaw centers on a manufacturing issue resulting from the quick ramp-up in production of replacement phones, these people said. It wasn’t clear what the manufacturing issues were.

ATL and  Samsung SDI declined to comment.

During its third-quarter earnings announcement in October, Samsung SDI told investors that it would examine and update its processes for battery development, manufacturing and evaluation.

Samsung’s troubles have extended to the political world, with its vice chairman being investigated by prosecutors as part of an ongoing embezzlement and corruption scandal that led to the ouster of the South Korean President. Earnings have remained strong, however, thanks to booming business in its semiconductor and OLED display manufacturing divisions.

The company has called the recall successful, with 96% of the phones returned. The primary holdouts have been through US carrier Verizon, who announced this week that customers still holding on to their Note7 phones will now have all non-emergency calls routed to their customer service line.

Read more at The Wall Street Journal.

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