The move is a response to an incident from earlier this week where a "safe" Galaxy Note 7 allegedly caught fire aboard a plane, prompting the cancellation of the flight. Suppliers were pushed to meet tighter deadlines for an earlier launch, which potentially led to critical oversights and has ended up costing Samsung millions in recall fees and replacements.
Some brokerages said the recall would cut Samsung's mobile profits by 1 trillion won ($F1.9t) or more. However, if carriers are offering customers to swap their Galaxy Note 7 replacement unit with another available smartphone, Samsung might lose a lot of its business to rivals.
However, the question about the phablet's safety has started once again after smoke started to emerge from a passenger's replacement Galaxy Note 7 just before takeoff on a Southwest Airlines flight. The fate of the Galaxy Note 7, at least for AT&T, could be decided by the end of Friday; however, no official decision was made as of 9:00PM ET.
This latest event sparked a new investigation by the U.S. Consumer Product Safety Commission investigation to discover any issues with the replacement devices it had previously approved. T-Mobile has said that it has resumed sales of the model and will continue doing so. "Until we are able to retrieve the device, we can not confirm that this incident involves the new Note7".
The DGCA, in a public notice on September 12, had advised air travellers "not to turn on or charge the device and also not to stow them in their check-in baggage". "Once we have examined the device we will have more information to share".
About half of all recalled phones in the USA had been exchanged by September 22, according to Samsung's most recent recall update, released on that date.
If AT&T stops selling the Galaxy Note 7, it's possible other carriers might follow suit.
Samsung's best option might be to recall the replacement Note 7 units and offer in their place a Note 6 or a high-end Samsung smartphone, plus a refund.
The overheating of the Samsung phone on the Southwest flight has rekindled doubts about the recall.