According to a latest report today published by Korean publication The Investor, Samsung is planning to go on sale the refurbished products of its ill-fated Galaxy Note 7 flagship with new batteries to “minimize losses” incurred after the unexpected recall last year due to the battery problem.
According to unnamed sources form Samsung, these refurbished phones will be sold in emerging markets starting from June. The refurbished Galaxy Note 7 will reportedly have a smaller battery and shell coverage, to ensure that the units will not suffer from the same issues like on Galaxy Note 7 units launched last year. Some of the other main parts will also be replaced to fit with the new battery.
Samsung had reportedly transferred 3.06 million Galaxy Note 7 units in Korea, out of which 200,000 devices are used for the company’s investigation due to the battery explosion. There are more than 2.5 million units stocked as inventories, while 2.5 million phones were sold abroad markets. Consumers in Korea aren’t interested in buying refurbished phones, so Samsung intends to sell refurbished Galaxy Note 7 smartphones only in emerging markets such as India, Vietnam, and Thailand. Samsung is also selling its refurbished phones in the US, but the company doesn’t have intention of selling the Galaxy Note 7 in the US market again.
The whole Galaxy Note 7 failure made Samsung lose more than $2.6 billion due to the recall program alone. But the total losses are estimated to be up to around $6 billion, as considering the original sales target of 20 million units.
In the investigation, Samsung found the flaw inside the Galaxy Note 7’s battery, which led to the batteries exploding in some cases. Then the replacement units were found to explode due to the defect manufacture from the second supplier. But Samsung confirmed that the Galaxy Note series will be continued and they are planning to launch the Galaxy Note 8 later this year.