Of the roughly 1 million Note 7 handsets already sold, only 24 contain the potential problem, Samsung said late Friday in Seoul.
Samsung SDI and Samsung Electro-Mechanics saw their shares drop 6.06 percent and 2.26 percent, respectively, on Sept.1.
Samsung is halting sales of its recently-launched flagship Note 7 smartphone and recalling phones of this model sold worldwide after reports of several units catching fire due to battery problems.
Citing an unnamed company official, Yonhap said Samsung’s investigation has found that faulty batteries have caused phones to catch fire.
The Note 7 was launched in the US on August 19 and is the latest from Samsung to include a fast charging feature, which attempts to replenish about 50 percent of the battery in about 30 minutes. Koh refused to name the supplier.
“By putting our top priority on customer safety, we’ve made a decision to halt sales (of Galaxy Note 7) and offer new replacement handsets to all customers”, Koh said.
“There was a tiny problem in the manufacturing process so it was very hard to find out”, Koh told reporters at a news conference. Samsung said it had confirmed 35 such cases in South Korea and overseas.
Samsung has halted the phone’s shipments since early this week following a series of reports on the phone’s explosion while charging. “It will cost us so much it makes my heart ache”.
The 34-year-old living in the port city of Busan said that she was bruised when she rushed out of bed after her phone burst into flames, filling her bedroom with smoke stinking of chemicals.
“If the exploded phone had burned near my head, I would not have been able to write this post”, she said in a popular online forum Thursday, where she shared a photo of the scorched Note 7 and described dousing the flames.
It is unusual for Samsung to confirm a delay in sales of a device, and rare for it to cite a quality issue. “If it continues for more than two weeks, the drop in demand for components for the Note 7 will be inevitable”, said Song Eun-jeong, an analyst from Hi Investment Securities.