Earlier today, Samsung announced that it would be releasing the detailed report of its Galaxy Note 7 investigation on January 23rd. However, a new report from WSJ has revealed the reasons behind the Note 7 units exploding all over the world.
The report citing “people familiar with the matter” says that the blame for the explosion lies on irregularly sized batteries that were overheating, while other batteries suffered from a manufacturing defect.
The batteries found inside the Note 7 were supplied by Samsung’s affiliate Samsung SDI or Hong Kong-based Amperex Technology. When reports about the Note 7 exploding first started making their way, the blame was put on faulty batteries supplied by Samsung SDI. However, when replacement Note 7 units also started exploding, it was assumed that the problem was with the internal design of the phone.
As it turns out though, batteries supplied by Samsung SDI for the Note 7 were indeed faulty. They were irregularly shaped and did not fit the phone properly. This led to overheating, with the phone eventually exploding. The batteries supplied by Amperex Technologies suffered from a manufacturing defect which occurred due to the sudden increase in production to cope up with the demand of quickly supplying replacement Note 7 units in the market.
Samsung, for its part, conducted the investigation by hiring three supply-chain analysis and quality-control firms along with its own internal team consisting of senior executives and engineers. In a bid to restore consumer confidence, Samsung will also be announcing an eight-step process involving more rigorous testing and inspections.
Despite the Galaxy Note 7 costing Samsung upwards of $5 billion dollars, the company seems to have recovered well from the fiasco and is on track to post its biggest quarterly profit in three years.