Under the agreement, which is a non-binding letter of intent, Tesla said it will use the cells and modules in a solar energy system that will work seamlessly with its energy storage products Powerwall and Powerpack.
The Japanese company is already working with the U.S. automaker to supply batteries for the Model 3, its first mass-market car.
Panasonic is expected to begin production at the Buffalo facility in 2017 and Tesla intends to provide a long-term purchase commitment for those cells, Tesla said in a statement, adding the agreement is contingent on shareholders’ approval of its acquisition of SolarCity.
Last week Tesla and SolarCity Corp shareholders agreed to vote on the proposed merger on Nov. 17, and the automaker said it would provide plans for the combined company ahead of the vote.
The fourth-quarter impact on Samsung Electronics’ operating profit will be “in the mid-2 trillion won range,” the company said in a press release early Friday. Using the midpoint of 2.5 trillion South Korean won, that would be about $2.2 billion. The damage will continue in the first quarter of next year, with an impact of about 1 trillion won, Samsung said.
The company announced Tuesday it had permanently stopped production of the Note7. It had launched a recall of the phone just weeks after it went on sale because of fires and explosions that destroyed some of the devices. Then, some replacement units it sent out as part of the recall had the same problem.
Also on Friday, the company said it would make significant changes in its quality assurance processes to enhance product safety for consumers.
Samsung didn’t forecast how the Note7 incident would affect sales in the coming quarters, but said it will “normalize” its mobile business by expanding sales of other high-end phones, such as the Galaxy S7 and Galaxy S7 edge.
On Wednesday, the company estimated the Note7 problem would cut about 2.6 trillion won out of a third-quarter operating profit of 7.8 trillion won. It also expects to report revenue of about 47 trillion won, down from the 49 trillion won it had forecast earlier.
The Tame Apple Press has been claiming that almost all the Galaxy Note 7 customers would defect to Apple’s iPhone 7, but a new survey suggests that less than 12 percent of them are thinking like this, and that number is shrinking by the day.
Branding Brand conducted a second survey of 1,000 Samsung smartphone owners from October 11-12 to compare consumer confidence to its earlier study, conducted on September 23.
It seems that only 40 percent of Note7 users have had enough of Samsung and want to go somewhere else. Given what has happened, this is a rather small figure and of that 40 percent, less than a third are moving to something Applish. This figure is down from an earlier survey which was conducted after the first recall.
As expected most Samsung users will go with another Android phone (up to 62 percent from 57 percent) and eight percent thought they would buy a Google Pixel. Given that is not really out yet we are not even sure why this option was in the survey. The Pixel is another Android device that means that Apple is going to get only 12 percent of the total Samsung users. More than 88 per cent of Note 7 users will either stay wilt Samsung or Android.
Chris Mason, co-founder and CEO of Branding Brand said:
“As we’ve watched the Galaxy Note7 recall and discontinuation play out, even more people say they will switch their smartphone brand. Consumers want to be confident in their personal safety and will choose a new smartphone accordingly. Only a week after Google’s smartphone launch, many already have their sights set on the Pixel.”
The U.S. government has issued an emergency ban of Samsung’s exploding Galaxy Note7 devices from all flights, strongly urging device owners to take advantage of the company’s exchange and refund offers.
Owners of Galaxy Note7s may not transport the devices on their person, in carry-on baggage, or in checked luggage, Department of Transportation and the Federal Aviation Administration said. The smartphones also cannot be shipped as air cargo under the ban, which goes into effect Saturday at noon Eastern Time.
Passengers who attempt to evade the ban by packing their phone in checked luggage are “increasing the risk of a catastrophic incident,” the agencies said in a press release. Anyone violating the ban could face criminal prosecution and fines.
Samsung said it is cooperating with the ban. The company is working with airlines to communicate the ban, a spokeswoman said by email. “Any Galaxy Note7 owner should visit their carrier and retail store to participate in the U.S. Note7 refund and exchange program now,” she added by email. “We realize this is an inconvenience but your safety has to remain our top priority.”
Samsung started selling the phone in the U.S. in August, and users almost immediately reported exploding devices. In early September, the FAA advised owners not to turn on or charge their devices on flights.
Samsung has twice recalled the devices, but some replaced phones have caught fire as well. The company stopped selling the phone earlier this week. Some owners have hung onto their devices, however.
“The fire hazard with the original Note7 and with the replacement Note7 is simply too great for anyone to risk it and not respond to this official recall,” Elliot Kaye, chairman of the Consumer Product Safety Commission, said in a press release. “I would like to remind consumers once again to take advantage of the remedies offered, including a full refund. It’s the right thing to do and the safest thing to do.”
Samsung Electronics has begun offering financial incentives for U.S. and South Korea customers who turn in their Note 7s for other products or refund them, as the tech giant scrambles to shore up its reputation in the wake of a damaging safety crisis.
The consumer electronics company is also expanding a U.S. recall of the fire-prone model to a total 1.9 million Note 7 phones, which includes the 1 million Galaxy Note 7s it recalled on Sept. 15.
The South Korean giant is in damage-control mode as rivals like Apple Inc and LG Electronics try to steal market share from the global smartphone leader after it was forced to scrap its latest high-end device.
Samsung is boosting its marketing and promotional efforts around other Galaxy-series smartphones to cushion the blow from the demise of the premium Note 7, which it finally abandoned this week after failing to resolve overheating problems which caused some of the phones to ignite.
Samsung said on Thursday it is offering up to $100 in bill credit to consumers who exchange their Note 7s for any Samsung smartphone in the U.S.
U.S. customers who exchange their Note 7s for a refund or other branded smartphone will receive $25 in bill credit.
“We appreciate the patience of our consumers, carriers and retail partners for carrying the burden during these challenging times,” said Tim Baxter, president and chief operating officer, Samsung Electronics America.
“We are committed to doing everything we can to make this right.”
The U.S. Consumer Product Safety Commission said on Thursday the Note 7’s “battery can overheat and catch fire, posing serious fire and burn hazard to consumers.”
It added that Samsung has received 96 reports of batteries in Note 7 phones overheating in the U.S., including 23 new reports since the Sept. 15 recall announcement.
In the U.S., Samsung began sending fireproof boxes and protective gloves to customers returning potentially explosive Note 7s, drawing humorous barbs from social media commentators.
The company has commenced offering similar financial incentives in its home market of South Korea, which it says would compensate consumers for their “big inconvenience.”
After days of heavy losses, Samsung’s shares ended 1.4 percent higher on Thursday while the broader market fell 0.9 percent.
On Wednesday, the firm slashed its quarterly profit estimate by $2.3 billion to reflect the impact of the Note 7 withdrawal, giving some investors hope that the financial cost of the debacle had been largely accounted for.
“We are confident the 3Q 16 re-statement puts to bed the direct financial impact of the Note 7 recall and termination,” UBS said in a report.
“In the near-term, we believe investors will re-focus on shareholders returns ahead of full 3Q results Oct 27th.”
Samsung Electronics Co cut its quarterly profit estimate by a third on Wednesday, absorbing a $2.3 billion hit from ditching its flagship smartphone in what could be one of the costliest product safety failures in tech history.
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.
“It’s possible there could be additional profit impact in the fourth quarter but it likely won’t be as large as the third quarter,” said Park Jung-hoon, a fund manager at HDC Asset Management, which owns shares in Samsung. “I think it’s possible for fourth-quarter profits to come in as much as the high 7 trillion won range.”
Samsung shares ended down 0.7 percent on Wednesday, with the Seoul market closing before the earnings guidance cut was announced.
As part of a strategy to focus on core activities, Fujitsu in February spun out its PC business as an independent operating unit. Such spinouts are usually a prelude to a sale.
On Wednesday, Japanese media reported that the company was in talks to sell the PC business to Lenovo.
“These reports are not based on any official announcement made by Fujitsu,” the company said Thursday, adding that it “is currently considering various possibilities, including what is being reported, but a decision has not yet been made.”
Once a powerhouse of PC production, Japan has largely retreated from the market over the last decade. Sharp pulled out of PC manufacturing in 2010 to concentrate on the tablet market. In 2011, NEC put its PC business into a joint venture with Lenovo, which went on to buy the majority of NEC’s stake in July. And in 2014, Sony sold its Vaio PC business to an investment firm.
A person familiar with the Lenovo-Fujitsu discussions told the Wall Street Journal that the deal could be structured similarly to the one with NEC, which now holds a 5 percent stake in its joint venture with Lenovo.
Lenovo made a name for itself outside China as a PC manufacturer when it bought IBM’s PC division for $1.75 billion in 2005, vaulting into third place in the global PC market.
Fujitsu targets the data center market with its servers, networking equipment, batteries and cooling systems, and also runs an IT services and cloud hosting business. But it also has other businesses not directly related to that, including smartphones, semiconductors and PCs.
Like IBM before it, Fujitsu wants to hang on to its more lucrative services and servers businesses — although even this could change. Almost a decade after its PC deal, IBM went on to sell part of its server business to Lenovo, too.
Samsung expected to report a higher than expected third quarter profit, despite having to write off a fortune because of the global recall of its Galaxy Note 7.
Analysts think that healthy sales of memory chips and displays eased the pain of the recall, although that could cost the firm nearly $5 billion this year.
But a pickup in the memory chip market will buttress earnings, company watchers say. Wall Street analysts think that July-September operating profit to have edged up 0.7 percent from a year earlier to $6.65 billion.
Samsung will report its estimates for third-quarter revenue and operating profit, without further details, on Friday. If Wall Street is correct in its predictions, then the world will move on from the recall and it will never be mentioned again.
Analysts have lowered their expectations for Samsung’s mobile division since the Sept. 2 recall made global headlines. Samsung’s chips division is expected to make a quarterly operating profit of $2,694,480,000 or more – its highest in four quarters.
The semiconductors uptrend was more pronounced for NAND memory chips – used for long-term data storage – as demand started to outpace supply during the quarter due to orders from Apple and Chinese smartphone makers. Demand for solid-state drive storage chips for mobile devices also grew.
Samsung’s display business earnings also likely picked up some of the slack from the mobile division thanks to increasing adoption of its organic light-emitting diode displays (OLED) by rising Chinese smartphone makers such as OPPO and VIVO.
Replacement Galaxy Note 7 smartphones are safe, Samsung said in attempting to reassure the public this week after reports that consumers in South Korea, China and the U.S. said the replacement devices were running too hot.
“We would like to reassure everyone that the new Note 7 phones are operating properly and pose no safety concerns,” the company said in a statement. “In normal conditions, all smartphones may experience temperature fluctuations.”
The fast charging of the Note 7 devices and other devices using lithium-ion batteries could make them feel very hot, analysts said.
Samsung first announced a global recall of 2.5 million Note 7 smartphones in 10 countries on Sept. 2 following reports of fires due to problems with the batteries.
About 90% of Note 7 users have opted for a replacement Note 7, Samsung said.
In the U.S. and Korea, more than 60% of all recalled Note 7s have been replaced, Samsung said. The company said it had traced the problems with the original Note 7s to an “isolated battery cell issue.”
Samsung also said there have been “only a small number of reported incidents” with the original Note7s. In the U.S., the Consumer Product Safety Commission recalled 1 million of the devices on Sept. 15 and said that it had received 92 reports of batteries overheating, including 26 reports of burns and 55 reports of property damage, including fires in cars and a garage.
Samsung and wireless carriers are still focused on making exchanges, but many analysts are now eyeing the damage that the recall could cause to Samsung’s overall image and competitive standing in a crowded smartphone field. Estimates for the cost of the recall to Samsung have ranged from $1 billion to $2 billion.
Samsung Electronics Co announced it has received back more than 60 percent of recalled Galaxy Note 7 smartphones sold in South Korea and the United States, suggesting it is making progress in its attempts to recover from the crisis.
In a statement, Samsung said it was focused on replacing all affected devices “as quickly and efficiently” as possible and reiterated its request that customers affected by the current recall should power off their device and turn them in.
The world’s top smartphone maker announced on Sept. 2 a global recall of at least 2.5 million Note 7 smartphones in 10 markets due to faulty batteries causing some phones to catch fire. The company says replacement devices it began issuing in mid-September use safe batteries.
Samsung hopes to take the faulty products off the market as soon as possible in order to limit further damage to its reputation and resume sales of the flagship device ahead of the key holiday shopping season in major markets such as the United States.
But the nearly month-long recall process has provided additional stumbles and embarrassment for the firm. Reports of Note 7 fires and damages have continued after the recall announcement, while aviation authorities around the world issued warnings or outright bans on the use or charging of the Note 7 on aircraft.
Samsung was also forced to push back the start of Note 7 sales in South Korea by three days to Oct. 1 due to relatively slow progress in the recall in its home market.
Some analysts say the cost of the recall and lost sales could wipe off nearly $5 billion in revenues for Samsung this year. Samsung said around 90 percent of customers who turned in their device through the exchange program have opted for a replacement Note 7, but it remains unclear how strong demand from new customers would be when sales resume.
Samsung Electronics Co Ltd has announced that it will be delaying the start of new Galaxy Note 7 smartphone sales in South Korea by three days to Oct. 1, a move it says is needed for speedy completion of the ongoing recall in the country.
Samsung announced on Sept. 2 a recall of at least 2.5 million Galaxy Note 7 smartphones in 10 markets, including South Korea, due to a faulty battery causing the phones to catch fire, offering refunds or replacement devices using safe batteries.
The firm hopes to complete the recall quickly and restart sales in the fourth quarter to salvage earnings, but the latest hitch in South Korea underscore continuing challenges in those efforts.
Though product exchanges in South Korea began on Monday, only about 200,000 affected customers have turned in their devices – which Samsung says represents half of affected customers and a recall pace that is much slower than other markets such as Singapore and the United States.
“The recall rate will likely fall sharply should new sales have resumed on Sept. 28,” the company said. Affected customers would no longer be able to exchange their devices through domestic carriers starting on Oct. 1, making the process more difficult.
Samsung hopes to restart new sales in affected markets once it makes enough progress with the recalls, having announced plans to restart sales in Australia and Singapore in October, but the nearly month-long recall process has provided additional stumbles and embarrassment for the firm.
Continued reports of Note 7 fires and damages after the recall announcement, along with warnings or outright bans from aviation authorities on the use or charging of the Note 7 on aircraft, forced Samsung to ask affected customers to immediately turn off their phones to prevent further damage.
Samsung issued an apology for the confusion caused by the delay and said it would do its best to resolve the current Note 7 situation quickly.
U.S. mobile carrier Verizon Communications Inc has resumed taking orders for Samsung Electronics Co Ltd’s new Galaxy Note 7 smartphones, after having stopped sales of the device earlier due to fire-prone batteries.
Samsung has recalled about 1 million Note 7 smartphones in the United States, offering to replace or refund the flagship phones. Their susceptibility to catching fire – with more than 100 cases reported across the globe – has damaged the image of the South Korean company.
Globally, the world’s top smartphone maker has recalled at least 2.5 million handsets, in a major setback for the company that is looking to claw back market share from rivals, including Apple Inc that recently released its latest iPhones.
Samsung halted new sales ahead of the recall as it prepared replacement Note 7 devices with safe batteries.
The new Note 7 phones have been approved by the U.S. Consumer Product Safety Commission for all purchases and exchanges, Verizon said on its website, adding it has the Samsung device available for sale starting Wednesday.
The largest U.S. wireless carrier warned that initial quantities could be limited.
Samsung said in a statement on Tuesday that it had shipped more than 500,000 new Note 7s to U.S. carriers and retailers and that affected users will be able to exchange their recalled phones starting by Wednesday at the latest. The statement did not specify when new sales would start.
Rival carrier Sprint Corp’s website also showed the Note 7 available for order, providing a list of stores where customers can pick up a new handset by appointment.
Samsung did not immediately comment on the U.S. sales plans.
The firm previously said it will resume new sales in South Korea starting Sept. 28 and that sales in Australia and Singapore would resume sometime in October.
Samsung Electronics Co Ltd , which has urged owners of its Galaxy Note 7 smartphone to return them due to fire-prone batteries, said it will push out a software update in South Korea that limits the devices’ charge to 60 percent.
The move comes as Samsung, the world’s biggest smartphone maker, also ran local advertisements apologizing for a recall that is unprecedented for a company that prides itself on its manufacturing prowess.
It has not decided whether to implement similar software upgrades limiting battery charging in markets other than South Korea, a company spokeswoman said.
The software update, which will be automatic, will begin at 2 a.m. local time on Sept. 20, Samsung said in a statement.
The firm has sold 2.5 million Note 7 phones in 10 markets including South Korea and the United States that are subject to the recall.
Samsung plans to begin offering replacement phones with safe batteries on Sept. 19 in South Korea.
A series of warnings from regulators and airlines around the world has raised fears for the future of the flagship device, pushing Samsung shares lower.
Samsung Electronics Co Ltd is urging owners of its Galaxy Note 7 phones to turn in their handsets as soon as possible as part of a recall aimed at limiting the damage caused by the fire-prone devices.
The world’s top smartphone maker said last week it would exchange all Note 7 phones in 10 markets including South Korea and the United States, a costly setback for a company that was counting on the model to bolster sales momentum as rivals such as Apple Inc launch new devices.
Reports that the phones’ batteries have combusted while charging or in normal use prompted the U.S. Consumer Product Safety Commission to stop using the Note 7 device.
Aviation authorities and airlines across the world have also issued bans or guidelines prohibiting passengers from turning on or charging the phone inside airplanes in response.
“We are asking users to power down their Galaxy Note 7s and exchange them as soon as possible,” Koh Dong-jin, head of Samsung’s smartphone business, said in a statement.
“We are expediting replacement devices so that they can be provided through the exchange program as conveniently as possible and in compliance with related regulations,” the statement added.
For Samsung, which prides itself on manufacturing prowess, the scale of the recall is unprecedented and deals a huge blow to its reputation.
Some 2.5 million of the premium devices have been sold worldwide that need to be recalled, the firm has said, and some analysts say the recall could cost Samsung nearly $5 billion in lost revenue this year.
The Korean company is offering to exchange all affected Galaxy Note 7 phones with a replacement device using a safe battery. Samsung has said replacement Note 7s will be available in some markets including South Korea and the United States from Sept. 19.
Qantas, its budget unit Jetstar and Virgin Australia said they had not been directed to ban the use of the phone by aviation authorities, but did so as a precaution following Samsung’s recall of the phones in 10 markets.
Although customers will still be able to bring the phones on flights, the ban extends to the phones being plugged in to flight entertainment systems where USB ports are available.
The recall follows reports of the 988,900 won ($885) phone igniting while charging – an embarrassing blow to Samsung, which prides itself on its manufacturing prowess and had been banking on the devices to add momentum to a recovery in its mobile business.
Samsung, the world’s biggest smartphone vendor, has sold 2.5 million of the premium devices so far.
“Following Samsung Australia’s recall of the Samsung Galaxy Note 7 personal electronic device we are requesting that passengers who own them do not switch on or charge them in flight,” a Qantas spokesman said in an emailed statement.
Samsung Australia said in a statement that it had liaised with Qantas and Virgin Australia following the recall.
The U.S. Federal Aviation Administration (FAA) is considering its response to the Samsung recall and “working on guidance related to this issue,” according to a FAA statement quoted by technology website Gizmodo.
Airlines have previously banned hoverboards from planes due to battery-fire risks.
In February the International Civil Aviation Organization, a United Nations’ agency, banned lithium-ion batteries from checked luggage following concerns from pilots and plane makers that they are a fire risk.