Samsung Galaxy: JB Hi-Fi, Telstra, Optus stop selling Note 7 phones over fire risk concerns
JB Hi-Fi, Optus and Telstra say they are removing Samsung Galaxy Note 7 phones from their shelves across Australia, amid reports of an imminent recall.
There are concerns the phone was at risk of catching fire while charging.
Korean media is reporting Samsung Electronics Co Ltd will announce a recall at a press briefing this evening.
JB Hi-Fi said it was not aware of any product recall and that an investigation was underway into the cause of the product malfunction.
The tech giant declined to comment on any recall plan for the high-end gadget, which was launched just weeks ago and has been the subject of several reported complaints overseas of the phones catching fire.
Samsung said in a statement it was "conducting a thorough inspection" with its partners on the Note 7 and would share its findings as soon as possible.
Unclear how many phones may have been affected
An Optus spokesperson told the ABC the telecommunications provider had temporarily paused sales of the Samsung Galaxy Note 7, pending the completion of an investigation by Samsung.
In a statement Optus said: "Any customers with concerns about their Samsung Galaxy Note 7 handset can visit their nearest Optus store to discuss their options."
Telstra was also investigating the problem with Galaxy Note 7 phones.
"We are talking to Samsung to understand more about the reports and as a precaution we have paused Galaxy Note 7 sales," a Telstra spokesperson said.
"We will contact existing owners directly if we learn there is an issue affecting their phones."
At this stage it is unclear how many phones have been affected by this problem.
'They need to nip it in the bud right now'
While analysts expect the Note 7 problems to be resolved quickly, ongoing major problems could derail Samsung's mobile recovery after a string of product successes had reversed the smartphone leader's declining market share.
The South Korean firm has pinned its hopes on the Note 7 to maintain strong sales momentum in the second half against stiffening competition from the likes of Apple Inc, which is expected to release its latest iPhone next week.
"They need to nip it in the bud right now," IDC analyst Bryan Ma said.
On Wednesday Samsung said it had halted supply of the new phone to the top three South Korean carriers and that shipments were being delayed as it conducted additional quality testing.
It did not elaborate on any problems it may have found with the gadget, which was launched in South Korea and other markets on August 19 and has been generally well-received by critics.
Investors stripped about $7 billion off Samsung Electronics' market value in response to the shipment delays on Thursday, but sentiment appeared to have recovered in Friday trading.
The shares rose 0.6 per cent compared with a 0.3 per cent gain for the broader market.
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