According to the Washington Post, Samsung is suspending production of its Galaxy Note 7 replacement phones after more reports of fires in South Korea and the United States.
1. According to the article, what major U.S. carriers are suspending sales or exchanges of the troubled device?
2. How many fires have been reported so far in replacement phones?
3. What types of damages have occurred with the Samsung phones prior to the voluntary recall on Sep. 2?
4. From a financial standpoint, what are the ramifications of these battery problems?
5. If you assume that the cost of replacing each phone is $100, how should Samsung account for the recalls, once they are able to safely provide replacement phones?
Barbash, F. and A. Fifield (2016). Samsung Galaxy Note 7 crisis deepens. Is it ‘done for’? The Washington Post, Oct. 10 (Retrievable online at https://www.washingtonpost.com/news/morning-mix/wp/2016/10/10/samsung-galaxy-note-7-production-suspended-after-replacement-phone-fires-reports-say/)