Samsung has issued a Galaxy Note 7 recall that may cost the company around $1 billion. The reason is due to battery issues. It was just in August of year that the Galaxy Note 7 was released. Many fans were looking forward to it, yet 35 customers have so far reported that the battery of the device either exploded or caught fire while charging.

Now, the Korean company has acknowledged the issues and recalled 2.5 million Galaxy Note 7 units. In addition, Samsung, and its carriers, have suspended sales of the devices. Furthermore, carriers are offering replacement phones until the issue is resolved. As a result, Samsung issued this statement:

We acknowledge the inconvenience this may cause in the market but this is to ensure that Samsung continues to deliver the highest quality products to our customers. We are working closely with our partners to ensure the replacement experience is as convenient and efficient as possible.

It was found that Samsung SDI provided 65% of the batteries. Chang Sea Jin, a professor at the National University of Singapore stated:

The potential damage to reputation is far greater than short-term financial losses.

The world’s biggest smartphone makers also relies on Hong Kong-based Amperex Technology Ltd., a unit of Japanese electronic parts maker TDK Corp., for batteries. Although, Amperex Technology Ltd. only supplied batteries to phones sold in China. After news of the recall, shares in Samsung SDI fell 2.8% to close at KRW 105,500. Samsung Electronics shares closed up 0.6%.Opinions expressed here by Contributors are their own.

Katrina Manning is the Editor In Chief for Techandburgers.com . In addition, she is the author of “Marmalade’s Exciting Tail, Lupus Obscurus and Under the Monastery. Her writing and editing services have been in demand over the last seven years, and she has contributed to a variety of websites and publications. She enjoys covering tech, business and lifestyle. Her objective is to provide a newsworthy, informative and enjoyable read.