Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Apple says iPhone 6 battery fires in China likely caused by external factors

Published 12/06/2016, 11:05 PM
© Reuters. iPhones sit on display during a preview event at the new Apple Store Williamsburg in Brooklyn, New York

BEIJING (Reuters) - Apple Inc (NASDAQ:AAPL) said external factors were the likely cause of iPhone 6 battery fires detailed in a Chinese consumer protection report that featured widely in state media earlier this week and created a buzz on social media.

The Shanghai Consumer Council released a report on Friday detailing battery fires in eight iPhone 6 handsets. It also detailed iPhone 6 handsets powering down before their batteries are depleted - handsets outside of a global iPhone 6 recall range that Apple announced on Nov. 20 to address the issue.

"The units we've analyzed so far have clearly shown that external physical damage happened to them which led to the thermal event," an Apple spokeswoman said in an emailed statement to Reuters late on Tuesday. She also said Apple was widening its investigation into the power-down issue.

The U.S. tech firm has seen Chinese sales fall over the past three quarters as domestic smartphone makers compete with high-spec handsets at low price points. It is hoping to bounce back in the first quarter of next year with its iPhone 7.

But domestic handset makers also likely received a boost after South Korea's Samsung Electronics (KS:005930) Co Ltd recalled 2.5 million Note 7 handsets globally following a series of battery fires, raising distrust of foreign smartphone brands, according to users, analysts and consumer groups.

The Shanghai Consumer Council in its report said that during Samsung's recall in October-November, complaints involving Apple products jumped, accounting for almost half the year-to-date total of 2763 - itself a nearly two-fold increase from 2015.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"The Samsung case did make (Chinese smartphone users) start to think an international brand doesn't necessarily equal a safe product," said Nicole Peng, Asia-Pacific director at researcher Canalys.

State media outlets featuring the Shanghai council's report on Monday garnered tens of thousands of comments on social media. While many doubted the iPhone 6 was at fault, top-ranking comments expressed frustration that foreign brands could set high prices and yet not guarantee safety.

"I still worry about the iPhone in case there is indeed a problem, but it's not investigated," said Mr. Liu, a 21-year-old student in Beijing.

"The news did make me change my Apple habits," he told Reuters. "For example, I don't dare play with the phone in bed and if it heats up I quickly throw it aside."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.