SEOUL (Reuters) - Samsung Electronics Co Ltd will replace all Galaxy Note 7 smartphones equipped with fire-prone batteries and halt sales of the flagship product in 10 markets, a devastating blow for what had been a revival in the firm's mobile business. Koh Dong-jin, head of the South Korean company's smartphone business, spoke at a news conference jam-packed with reporters and cameras, with affected markets including the U.S., but not China, where models feature a different battery. The announcement on Friday comes just over two weeks since the premium device's launch, and follows reports of the 988,900 won ( 885) phone igniting while charging. The executive, who declined to comment on the number of phones needing replacement, said Samsung had sold 2.5 million of the premium devices so far. The manufacturer plans to replace not only phones with faulty batteries sold to consumers, but also retailer inventories and units in transit.
Apple says iOS 10 will let users register to be an organ, eye and tissue donor directly in the Health app.Video provided by Newsy Newslook In this Sept. 9, 2015, photo, Apple CEO Tim Cook introduces the iPhone 6S during an Apple media event in San Francisco. SAN FRANCISCO -- Samsung Note 7's losses may be Apple iPhone 7's gain. That's promising news for the Cupertino company as it gets set to announce quarterly earnings Tuesday. Apple has repeatedly been hit with year-over-year declines in smartphone sales, due to a mix of market saturation and the quality of its iPhone 6s. But analysts are expecting that the travails of Samsung's overheating phablet-sized smartphone, dropped unceremoniously after two recalls that could cost the company more than 5 billion, could inadvertently end a fallow stretch for iPhone.
In this Monday, Oct. 10, 2016, file photo, South Korean high school students try out Samsung Electronics Galaxy Note 7 smartphones at the company's shop in Seoul, South Korea. At an event in NYC Wednesday, Samsung is expected to launch its newest Note. SAN FRANCISCO -- Samsung is ready to unpack a new Galaxy smartphone Wednesday. Apple is expected to follow suit, with its 10th-anniversary iPhone, next month. The world's two-biggest smartphone sellers, in rapid succession, are making major additions to their product lineups that could broaden appeal to millions of consumers, who have dragged their feet on upgrading.
Quantifying the financial pain of Tuesday's move to scrap the Galaxy Note 7 smartphone after a global recall and weeks of mounting problems, the world's top smartphone maker said it expects its July-September operating profit was 5.2 trillion won ( 4.7 billion), down from the 7.8 trillion won it estimated five days ago. Samsung said in a statement the 2.6 trillion won ( 2.3 billion) guidance cut reflects the sales and earning impact it currently expects from the decision to permanently halt sales of the 882 Note 7 device. Its third-quarter revenue estimate was also cut to 47 trillion won from 49 trillion won previously. The new earnings guidance is 30 percent below third-quarter 2015's operating profit, and left investors and analysts pondering the longer impact on Samsung's brand and earnings. Rival suppliers of smartphones that use the Android operating system, like Samsung's, stand to benefit if the Note 7 damage drive consumers elsewhere.