It’s been a strange few weeks for Samsung fans as well as the company itself, as for the first time in the line’s history, they’ve had to recall the Galaxy Note 7 from sale and ask people to replace their existing handsets for a safe model. The problem here, as many will no doubt have seen already, is that the battery inside of the Galaxy Note 7 has been catching fire or exploding entirely. This has been an embarrassing period for such a large and well-respected company as Samsung, and it’s not only hit them hard in terms of PR, but they’ve lost Billions of dollars from their market value, too. It was covered some time ago that Samsung had identified the batteries from Samsung SDI as those causing the issues – not to be confused with Samsung Electronics, the manufacturer of the Galaxy Note 7 – and given that devices in China were unaffected, this latest development shouldn’t be much of a surprise.
According to a report from Reuters, Chinese battery manufacturer ATL, will become the sole supplier of batteries for the Galaxy Note for “the next quarter or two”. The Galaxy Note 7 in China was unaffected by the global product recall Samsung initiated a couple of weeks ago now, due to the fact that batteries manufactured in South Korea could not be used in devices sold in China, which meant those devices were, in a word, “safe”. This is why some devices marked as “Made in China” could be considered safe no matter where in the world you are, but it’s always a good idea to get a free replacement in a situation like this. Whether or not China’s ATL will become the sole supplier for the remainder of the Galaxy Note 7’s life on shelves remains unclear, but this is currently thought of as a temporary solution. Samsung SDI had previously been producing around two-thirds of the batteries required for the Galaxy Note 7, but now that has shifted over to ATL, at least for the remainder of 2016.
Once Samsung SDI has got the manufacturing issue that Samsung detailed earlier this week under control, it’s likely that Samsung will shift back to these devices, but again, this isn’t clear right now. As for the future of the Galaxy Note 7 itself, analysts don’t see its future as being all bright, with SK Kim from Seoul’s Daiwa Capital Markets saying that a 12 Million maximum is the best that Samsung could hope for given the recall.