Skip to main content
  1. Home
  2. Phones
  3. Android
  4. Apple
  5. Mobile
  6. News

In a mad dash to dethrone Apple, Samsung overextended its suppliers

Add as a preferred source on Google

Ever since it launched the Galaxy S7 and S7 Edge, everything was going right for Samsung. Sales were surpassing Apple’s iPhone 6S and 6S Plus; the Note 7 kicked off to rave reviews; and after several quarters of profit declining, Samsung saw its best profit in two years.

But the device that Samsung bet it all on, the Galaxy Note 7,  had a manufacturing defect — in the company’s mad dash to quell excitement over Apple’s iPhone 7 and 7 Plus, it put too much pressure on its suppliers, according to Bloomberg. That resulted in the explosive Note 7 that has since been recalled, and is currently being replaced with a new batch of devices. Bloomberg cites multiple sources familiar with the matter.

Recommended Videos

It all began when Samsung executives learned that Apple would not be offering any new major features in the iPhone 7 lineup. The Korean giant capitalized on this weakness and planned to “dazzle consumers.” It moved the Note 7’s release date to an earlier date, forcing suppliers to meet new deadlines.

And suppliers not only had to keep up with deadlines, but Samsung employees, who would sleep in the office to compensate for time lost during commutes, constantly changed the specs of the device. Still, company and its suppliers managed to hit deadlines and the first devices were shipped to wireless operators around the world. An executive at one carrier reportedly said it received the device in May, and said the carrier had the typical amount of time to run tests. It didn’t find an issue with the battery.

But come August and September, Note 7 devices began exploding. Of course, it hit social media first. Samsung executives were shocked, but after shifting blame to Samsung SDI, the unit that provides the battery for the Note 7, Samsung’s phone unit took responsibility. The company deliberated on whether to do a full recall, or begin a battery replacement program. It studied previous recalls, such as one from Toyota.

“Please recall all Note 7s and exchange them with new ones,” one employee, according to Bloomberg, wrote on an online bulletin board. “I don’t have to get my PS, it’s humiliating.” (The PS refers to profit sharing, or bonus.)

That post kicked off many responses from Samsung employees agreeing with the sentiment and idea of a full recall. Samsung’s mobile chief, D.J. Koh, responded, apologizing to his staff. The next day he issued a full recall.

More than 2.5 million Galaxy Note 7 devices were sold, and only a fraction of that has been recalled so far. The race to dethrone Apple will end up costing the Korean giant more than $2 billion. The company said sold its stakes in Seagate, ASML Holding NV, Rambus Inc., and Sharp for about $891 million to recoup some of the cost.

Galaxy Note 7 sales will begin again on September 28 in South Korea, though there’s no clear date for the rest of the world. For more information about the recall, you can check out our in-depth guide here.

Julian Chokkattu
Former Mobile and Wearables Editor
Julian is the mobile and wearables editor at Digital Trends, covering smartphones, fitness trackers, smartwatches, and more…
Finding Android apps on the Google Play Store just got a lot easier thanks to Gemini
Google's AI assistant now works directly with the Play Store to recommend and install apps.
Google Play Store Photo

Google is making Gemini even more useful on Android. Google first previewed the Google Play connected app for Gemini at Google I/O 2026, and it's now finally rolling out to users. The new integration brings the Play Store directly into Gemini, letting the AI assistant help discover apps, make purchases, and complete more tasks without leaving the chat.

Gemini can now do more than recommend apps

Read more
It looks like Apple will treat you to a $200 price hike on the iPhone 18 Pro, after all
The Mac price hike told us a lot about what's coming for the iPhone 18 Pro, and IDC is now putting a number on it.
iPhone 17 Pro

Apple's Mac and iPad prices went up this week, by a good margin, no less, and the memory crisis behind them isn't going anywhere anytime soon. 

The obvious next question is what happens to the iPhone 18 Pro, which is expected to arrive later this year. IDC has an answer, and you might not like it (via MacRumors).

Read more
iPhone 18 could get a RAM boost, but only a tiny sliver to run AI chores in iOS 27
A new report suggests the extra memory is aimed at keeping Apple Intelligence running smoothly.
Apple iPhone 17 back

Apple's next iPhone may not get a dramatic RAM upgrade, but it could receive just enough extra memory to keep its growing AI ambitions running smoothly. According to TF International Securities analyst Ming-Chi Kuo, the standard iPhone 18 and iPhone 18e are expected to move from 8GB to 9GB of RAM, primarily to support deeper Apple Intelligence integration in iOS 27.

Just enough RAM to keep Apple Intelligence happy

Read more