Trouble in Samsung's Paradise

DGCA has banned passengers from using Samsung Note 7 on flights


Samsung is in news again for all the wrong reasons lately. The Directorate General of Civil Aviation (DGCA) has banned passengers from using Samsung Note 7 on flights.


"In light of the recent incidents involving battery incidents with Samsung about its Galaxy Note 7 devices globally, traveling public and airlines are advised not to switch on these mobiles during the flight or stow them in any checked in baggage," read a DGCA order.


The aviation regulator clarified that a passenger can carry such a phone on board only in switch off mode and in cabin baggage.


Why this ban?


The DGCA order came after the global aviation regulators like the US Federal Aviation Authority warned the passengers not to turn on or charge their phone because of concerns about the Samsung devices.


This regulation came because a jeep burst into flames after a Samsung Galaxy Note 7 set alight when it was put on charge inside the vehicle. This incident made owners switch off their phones immediately and exchange them after reports that at least 35 of the phones overheated and broke. A six year old boy was rushed to hospital in New York to be treated for burns to his body after a Samsung Galaxy Note 7 caught fire in his hands.


DGCA has banned passengers from using Samsung Note 7 on flights


Samsung's explanation


As battery explosion fears led to a global recall of Samsung's premium Galaxy Note 7, the South Korean giant revealed what caused the overheating of the battery cell.


On its UK website, Samsung wrote: "Based on our investigation, we learned that there was an issue with the battery cell. An overheating of the battery cell occurred when the anode-to-cathode came into contact, which is a very rare manufacturing process error".


'Do not use Note 7'


After the incident, the company has urged customers to stop using Galaxy Note 7 smartphones immediately and exchange them as soon as possible, as more reports of the phones catching fire emerged even after the company's global recall.


Samsung in loss


DGCA has banned passengers from using Samsung Note 7 on flights


This global recall following the incidents brought down Samsung's market value by $22 billion over the last two days. On the day the news broke, the company's shares went down by 7% to close at 1.46 million won ($1,318). This was the company’s largest drop this year.


The loss amounted to 15 trillion Won of the company’s total value. This is the biggest share decline since 2008.


Hwang Min-Sung, analyst at Samsung Securities, said the fallout from the recall - which involves 2.5 million handsets distributed in 10 countries - may slash the firm's profit later this year by more than one trillion Won.


No, this news is certainly going to affect the company's future aspects as well. This news also comes at a time when rival company Apple launched its much anticipated jack-less iPhone 7. Even though customers are not very happy with the new iPhone but this news from Samsung is not pleasant either. So, let's see who wins the business battle by the end of the year.




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