Samsung cancels orders for fire-prone Note 7 in Kenya as airlines ban device

Samsung Electronics has suspended all orders for its new Samsung Galaxy Note 7 smartphone in Kenya as major airlines globally banned the use of the phone.

The Kenyan office has also confirmed that cases across the globe where the new Galaxy Note 7 is reported to explode when being charged, are true. The phones are said to have faulty batteries.

“Locally, we have been in contact with customers who have already pre-ordered the Galaxy Note 7 devices,” Jung Hyun Park-VP and Managing Director, Samsung Electronics East Africa, said in a statement.

“We are assuring them they will get quality assured products in the shortest time possible. In the meantime, we are temporarily holding further pre-orders as we await new delivery timelines.”

The US Federal Aviation Administration (FAA) late on Thursday said travelers should not charge the phones while in the air or stow them in checked luggage. This saw the world’s three largest carriers by passenger traffic, American Airlines, Delta Air Lines and United Airlines ban the use of the phones.

Prone to catch fire

Already, the South Korean handset maker has been hit by recalls of the Note 7 in 10 markets including the US. The firm said the phones’ batteries were prone to catch fire.

In Kenya, Samsung said it was aware of FAA’s statement. “Consumer safety and peace of mind are our top priority. We have not started distribution of the Note 7 in the Kenyan market,” said Hyun Park.

“However, in the markets where the product is being sold, plans to expedite new shipments of Galaxy Note7 are already underway in order to alleviate any safety concerns and reduce any inconvenience for our customers.”

A source who is aware of the happenings, however, said 20 smartphones had been pre-ordered by Kenyan customers but claimed the customers have so far been refunded. The source said the Samsung office had asked people to pre-order the high-end smartphone before official launch.

But globally, Samsung said, “To date there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market.”

“However, because our customers’ safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note7,” Hyun Park added.

Shares of the South Korean company fell 3.9 percent on Friday. The US Consumer Product Safety Commission has cautioned against using the phones under any circumstance.

For months, pilots and plane makers have raised concerns about lithium-ion batteries, which are used in many consumer devices ranging from phones to laptops to toys. “This is “a huge black eye for Samsung,” TECHnalysis Research President Bob O’Donnell said.

Companies ranging from Singapore Airlines Ltd and Qantas Airways Ltd to Air France KLM SA have instituted similar bans on the device.

They are the latest in ongoing efforts in the airline industry to manage the use of lithium-ion batteries, which are known to burn and are used in many devices, from phones and laptops to toys.

“The cost of the recall is going to be astronomical,” said product liability expert and chief executive officer of Real-World Forensic Engineering, Jahan Rasty.”

They have to compensate people, fix the problem and give them a revised version of the product that doesn’t have the same manufacturing or design defect.

A January report by FAA said at least 171 incidents of smoke, fire, extreme heat or explosion involving batteries have occurred since 1991.

Premium devices

In some instances, they have caused emergency landings, as when a camera short-circuited and started a small fire in the overhead bin of an American Airlines flight in September 2013. Injuries were rare, the report said.

For Samsung, which prides itself on manufacturing prowess, the scale of the recall is expected to be unprecedented. Some 2.5 million of the premium devices have been sold worldwide, the company has said.

—Additional reporting by Reuters