Samsung recalls its Galaxy Note 7

Samsung (SSNLF) will be recalling around 2.5 million of its Galaxy Note 7 smartphones around the world after numerous reports of the models catching fire when charging. The news comes as a major setback for the manufacturer as the phone was launched by Samsung just over a month ago and Apple (AAPL) is set to launch a new smartphone by next week. The company announced that a problem was found with the phone's battery and claimed that sales were hampered by it. All customers' phones will be replaced for free. Samsung said that preparations for the mass recall is estimated to take around two weeks and the availability of new products will differ between countries. In the meantime people are urged to take their smartphones to be serviced if they are worried about their batteries. So far the company has been made aware of 35 phones being faulty and around 24 for every million smartphones sold are reported to catch fire while charging. It is yet to be estimated how much replacing the phones will cost the company.