Korean smartphone maker Samsung which is dealing with the Galaxy Note 7 recall crisis has indicated it will from now on use all batteries for the device from China's ATL. The manufacturer was forced to recall nearly 2.5 million units of the Galaxy Note 7 all of which used its subsidiary Samsung SDI's batteries.
"A high-ranking Samsung official last week asked ATL to increase the monthly supply to 4 million battery cells and we have decided to do so," said an ATL executive.
Samsung had already announced that it would ditch Samsung SDI batteries for new orders even though the battery supplier denied any fault with its components. But Samsung remains firm that explosions were reported only in batteries produced by the sister firm.
The report states that due to heavy demand for replacements of Galaxy Note 7s and additional expectancy of new orders, Samsung and ATL have tentatively agreed on a new supply deal. Prior to this, Samsung SDI was scheduled to make 60 to 70% of Note 7's batteries, while ATL would produce 30 to 40% of the orders. This will drastically change now.
Apple's new iPhone 7, touted to be the Galaxy Note 7's closest competitor, is also said to have a large chunk of its batteries procured from ATL. The iPhone 7 and 7 Plus were released on 7 September at a crucial time when Samsung, its closest competitor, has been hit by the massive recall crisis thus giving Apple the advantage to steer consumers towards its phones.