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October 7, 2016 04:00 pm

Samsung Could Face Second Recall As US Probes Burnt Phone

The Federal Aviation Administration and the Consumer Product Safety Commission are investigating Wednesday's incident, when a passenger's phone emitted smoke on a Southwest Airlines plane readying for departure from Louisville, Kentucky. Bloomberg reports: "If it's the fixed phone and it started to smoke in his pocket, I'm going to guess there'll be another recall," said Pamela Gilbert, a former executive director of the consumer agency. "That just doesn't sound right." Samsung has been engulfed in crisis since the Note 7 smartphones began to burst into flames just days after hitting the market in August. The Suwon, South Korea-based company announced last month that it would replace all 2.5 million phones sold globally at that point. Samsung said it had uncovered the cause of the battery fires and that it was certain new phones wouldn't have the same flaws. The first indications of the existing recall's financial impact could be seen Friday with the company's release of earnings that rose at the slowest pace in five quarters. Operating income increased just 5.5 percent to 7.8 trillion won ($7 billion) in the three months ended Sept. 30.

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