More Powerful Batteries + Thinner Cell Devices = Fire Hazards

What happens when a cell phone manufacturer tries to jam pack a more powerful battery into a thinner phone? If the manufacturer is SAMSUNG ELECTRONIC KRW5000 SSNLF, then the answer is deal with a large scale recall and suffer a major blow to your reputation.

Samsung was forced to recall 2.5 million Galaxy Note 7 devices after several dozen devices caught fire, even exploding in some instances, while charging.

Unfortunately for Samsung, the recall occurred right before Apple Inc. AAPL unveiled its new iPhone 7, which is off to a successful start. Of course, it helps when Apple's biggest rival can't guarantee selling a phone that won't blow up.

Related Link: Pre-Orders Suggest Apple's iPhone 7 May Exceed The Street's Low Estimates

According to the Associated Press, Samsung's mobile president Koh Dong-jin attributed the recall to a "tiny error" in the manufacturing process that was very difficult to identify.

"The flaw in the manufacturing process resulted in the negative electrodes and the positive electrodes coming together," he told reporters in South Korea.

In the meantime, Samsung will issue a software update for Note 7 owners that recharges the battery at just 60 percent capacity to minimize the chances of overheating. The company is also urging users to keep their devices turned off until it issues new replacements on September 19.

Samsung's woes are now prompting some experts to argue that the company's reputation will take a hit for the worse.

Park Chul Wan, a former director of the next generation battery research center at the state-owned Korea Electronics Technology Institute, told the Associated Press that if Koh's acknowledgment is accurate then Samsung is essentially a "third-rate company."

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!