Samsung had a previous wireless phone recall in 1994
And the Samsung Galaxy Note 7 kept the momentum going. The first Note to offer a waterproof build, Samsung even added an iris scanner. But just as Samsung's shares hit an all time high on the back of a positive launch for the high-end phablet, news came out about two Galaxy Note 7 units that exploded while charging.
While Samsung is getting mostly high marks for taking quick action to halt shipping and sales of the phone, and for helping carriers set up exchange offers, the company is taking heat from Consumers Reports for not making it an official recall. Doing so would get other governmental agencies involved, and would make it illegal to sell the phone for now. Samsung is going to take as much as a $1 billion hit on a phone that they should have been making big bucks with.
Interestingly enough, this is not the first time that Samsung has had to deal with a recall of a phone, official or not. In 1994, Samsung rolled its first wireless phone off of the assembly line. While the technology was widely lauded, 11.8% of these handsets were defective and 150,000 units had to be sent back to Samsung. 2,000 employees watched as the handsets were destroyed right in front of them, probably to drum in to their minds a lesson learned about product quality.