Yahoo Finance Samsung to sell Galaxy Note 7s that were recalled over fire risk as refurbished versions
Samsung said it planned to sell refurbished versions of the Galaxy Note 7 smartphones that were pulled from markets due to fire-prone batteries.
The tech giant made the announcement as it prepares to release its flagship smartphone, called the Galaxy S8, in the coming months.
The Note 7s were permanently scrapped in October, roughly two months from the launch of the near-$900 devices, as more of the phones self-combusted despite a global recall initiated in September. A subsequent probe found manufacturing problems in batteries supplied by two different companies - Samsung SDI Co Ltd and Amperex Technology Ltd.
Analysis from Samsung and independent researchers found no other problems in the Note 7 devices except the batteries, raising speculation that Samsung will recoup some of its losses by selling refurbished Note 7s. The company estimated a $5.5 billion profit hit over three quarters from the Note 7's troubles.
Samsung Galaxy Note 7 goes up in flames during lab test
Samsung, which had sold 3.06 million Note 7s to consumers before taking the phones off the market, had not previously said what it plans to do with the recovered phones.
"Regarding the Galaxy Note 7 devices as refurbished phones or rental phones, applicability is dependent upon consultations with regulatory authorities and carriers as well as due consideration of local demand," Samsung said in a statement, adding the firm will pick the markets and release dates for refurbished Note 7s accordingly.
The company also plans to recover and use or sell reusable components such as chips and camera modules and extract rare metals such as copper, gold, nickel and silver from Note 7 devices it opts not to sell as refurbished products.
Great news! Because of your action, Samsung will recycle MILLIONS of recalled Galaxy Note 7 phones. https://t.co/q1qFwbUIHM#SaveTheGalaxypic.twitter.com/VABLsXvh2a
— Greenpeace USA (@greenpeaceusa) March 27, 2017
The firm had been under pressure from environment rights group Greenpeace and others to come up with environmentally friendly ways to deal with the recovered Note 7s.
Greenpeace said in a separate statement on Monday that it welcomed Samsung's decision and the firm should carry out its plans in a verifiable manner.
“People around the world signed petitions, emailed Samsung’s CEO, demonstrated in cities around the world, and finally Samsung has listened,” said Jude Lee of Greenpeace East Asia.
“This is major win for everyone that took action, and a step towards shifting the way we produce and dispose of electronics.”
What we know | Samsung Galaxy S8
