Samsung Note 7 Explosion Issue Probe Reveals Battery As Main Cause

Investigation about the main cause of Samsung's Galaxy Note 7 fire issues revealed battery as the problem, Reuters reported according to the source. Analysts believe that it will be difficult for Samsung to release a convincing statement and explanation about the problem as it will affect consumer's trust. Will Samsung be able to regain the credibility of its products?

According to Reuter's source, the result of the investigation will be revealed on January 23, a day before the announcement of the company's fourth-quarter network. This will likely be delivered by the head of Samsung's mobile management, Koh Dong-jin. Together with the announcement of the result are the measures Samsung is taking to avoid reoccurrence of trouble in its future products.

A source has also said that the company examined all the aspects of the Samsung Galaxy Note 7, both hardware and software, but failed to identify how the fire starts.

"They've got to make sure they come clean, and they've got to reassure buyers as to why this won't happen again," said Singapore-based analyst for researcher IDC, Bryan Ma. He added that Samsung might also try to wash their hands and pass the cause of the problem to the suppliers, as what they previously did.

On September, Samsung claimed to have the issue at the supplier's end where 2.5 million Note 7 units were announced dangerous. However, the new batches of Note 7 which they claimed safe and came from different supplier still continue to have explosion issues. This lead Samsung to forcibly stop the production of the units, causing the company to lose $17 billion in sales by October.

While Samsung company as a whole is large enough to recover and absorb the loss Galaxy Note 7 has bought, some analysts say that they might still have to cut the fourth quarter mobile division profit up to 85 percent.