Samsung on Friday said that because of a problem with the Galaxy Note 7 battery it would halt sales of the new device around the world and would recall and replace those phones already sold.
The recall comes at a critical time for Samsung, as Apple prepares to unveil its latest iPhone next Wednesday. If the problem persists, it could threaten the momentum Samsung has enjoyed over the last few months, fueled by the success of the Galaxy S7. With the well-received launch of the Note 7 last month and the Gear S3 smartwatch at the IFA trade show this week, the company was starting to get its swagger back.
"There's definitely damage done and the whole incident is detrimental to Samsung's image," said IDC analyst Tay Xiaohan. "The level of damage will depend on how Samsung addresses this issue quickly and solves the problem."
Samsung said it had received 35 separate reports worldwide tied to what it described only as a "battery cell issue." It is working with its suppliers to root out other "affected batteries" in the market.
In recent days, South Korean social media had seen a spate of people posting images of charred Galaxy Note 7 devices, claiming they had overheated or exploded.
The company also said it will voluntarily replace every Note 7 already in the market "over the coming weeks." Further details on the recall and on the replacement program are not yet known.
It's not the first time Samsung has had trouble with its Note line. Last year, users complained of a design flaw in the Note 5 that led to problems when the phone's stylus was inserted into the phone the wrong way.
The timing is bad, though.
Counterpoint Research analyst Tarun Pathak said that Samsung has "lost the critical window of opportunity" of time where buyers would look to upgrade from older devices. In a matter of weeks, he says, many will look to Apple's upcoming iPhone 7.
