Samsung’s New Battery Factory is the Real Culprit Behind Note 7 Fiasco

By now, chances are you are likely aware of the Note 7 battery fiasco, which could set Samsung back by as much as a billion dollars. This will be huge as the Note 7 was supposed to be the phone that reinforces Samsung’s status at the top of the Smartphone food chain.

As it turns out, the fault which caused Samsung to announce the recall was exclusive to its own division, Samsung SDI. However, as this division manufactured up to 70-percent of all batteries for the Note 7, things aren’t looking any better for the company.

The remaining Note 7 batteries are supplied by its Hong Kong supplier, Amperex Technology, which manufactured the batteries used in the Chinese models of the Note 7. Naturally, those are the only units not affected by this recall.

This could also be the first time that Samsung has used so many of its own batteries in one of its own smartphone, as previous Notes and Galaxy flagships didn’t get this treatment. Samsung SDI started making these batteries non-removable with the Galaxy S6 but couldn’t keep up with the company’s other suppliers, LG and ATL.

As expected, investors didn’t take kindly to this development and Samsung SDI’s shares have lost more than a tenth of their value since the news broke.

In the aftermath of this event, Samsung Electronics has stopped using Samsung SDI’s batteries for the Note 7, until a solution is found. With many more precautions in the aftermath of this incident, that could take some time.

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