Launch of the Samsung Galaxy S8- Note 7 Loss is $5.2 billion 3 Qs

Launch the Galaxy S8, one of its flagship phones, in the first half of this year.

Professionals  do question ,Samsung to provide a convincing and detailed explanation about what went wrong with the Note 7 what steps taken by the company to prevent such problems from recurring if it is so to regain consumer confidence.

“They’ve got to make sure they come clean and they’ve got to reassure buyers as to why this won’t happen again,” said Bryan Ma, Singapore-based analyst for researcher IDC.

The results of the investigation will likely be announced on Jan. 23, a day before it announces detailed fourth-quarter earnings results, said the person, who was not authorized to speak publicly on the matter and declined to be identified.

Koh Dong-jin, head of Samsung’s mobile business, will likely announce the results as well as new measures the firm is taking to prevent similar problems in future devices, the person said. But a Samsung spokesman declined to comment.Samsung  announced a recall of some 2.5 million Note 7 phones in September and identified the cause of the fire as a manufacturing process problem at one of its suppliers, later identified as affiliate Samsung SDI Co Ltd.

However, Samsung Note 7s  were safe batteries from a different supplier continued to catch fire, forcing the company to permanently halt sales of the device and dealing a 6.1 trillion won ($5.2 billion) blow to Samsung’s operating profit over three quarters.

“To me it’d be surprising if they said it was a supplier issue,” IDC’s Ma said, adding he suspects Samsung may not have given enough room for the battery inside the phone.

Samsung said  in October,it will examine all aspects of the phone, including hardware design and software, and would hire third-party firms as part of its probe.

Further  Samsung  aapears to be in fix .South Korean special prosecutors have requested an arrest warrant for the de facto leader of Samsung Group, the country’s biggest conglomerate. It’s in connection with a scandal involving President Park Geun-hye’s confidante.

The prosecutors say Samsung Group paid bribes of about 36 million dollars to 2 foundations closely linked to the president’s confidante Choi Soon-sil. They’re accusing Lee Jae-yong, Vice Chairman of Samsung Electronics, of bribery and embezzlement.

The prosecutors also say they can prove that the President and Choi shared the benefits.

The request for the warrant came after the prosecutors questioned Lee for 22 hours last week. They suspect that he asked for support from the presidential office for a merger of two firms in Samsung group and provided the funds in return.

South Korean media were skeptical about the need to arrest Lee, saying there is no risk of him escaping.

The prosecutors say they took into account the possible economic impact of their action but concluded that justice is more important.

Media agencies

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