:00:00. > :00:26.Nothing wrong with the phones, it was all in the battery - Samsung
:00:27. > :00:31.explains the reason why the Galaxy Note mobile phones caught fire and
:00:32. > :00:35.were recalled. The UK government to outline the industrial strategy.
:00:36. > :00:39.But with Brexit looming large, where will any government money go?
:00:40. > :00:45.Also in the programme: iPhone maker Foxconn signals $7 billion
:00:46. > :01:00.Korean electronics giant Samsung has released the results
:01:01. > :01:03.of its investigation into its flagship Galaxy Note 7 smartphones.
:01:04. > :01:06.In October last year the phones were recalled because some had
:01:07. > :01:15.The company today confirmed problems with the design saying
:01:16. > :01:19.the manufacturing of batteries was to blame, not the actual phones.
:01:20. > :01:22.The Note 7 was supposed to rival Apple's iPhone 7 but instead,
:01:23. > :01:25.the device caused massive damage to the company's profits,
:01:26. > :01:37.Last year, over 100 of the phones spontaneously burst into flames.
:01:38. > :01:40.This forced Samsung to halt production and recall millions
:01:41. > :01:43.globally months before the all important Christmas sales period.
:01:44. > :01:46.The debacle almost entirely wiped out the company's mobile business
:01:47. > :01:48.profit in the third quarter of last year,
:01:49. > :01:53.And this dragged total profits at the company down by 30%,
:01:54. > :02:00.Samsung itself predicted another three billion dollars could be wiped
:02:01. > :02:08.off profits over the next two quarters.
:02:09. > :02:11.The total cost of the recall has been estimated at around
:02:12. > :02:13.$5.3 billion, but the damage to the company's
:02:14. > :02:23.This is how one of the independent external experts that has helped
:02:24. > :02:31.Samsung find the cause of the fires summed it up.
:02:32. > :02:37.We need additional analysis to understand the root cause of the
:02:38. > :02:45.damage to the edge or corner of the battery which results in internal
:02:46. > :02:51.issues at that location. In summary design and manufacturing issues with
:02:52. > :02:52.the batteries led to failures of the devices.
:02:53. > :02:55.With me is Daniel Gleeson, Consumer Technology Analyst at Ovum.
:02:56. > :03:02.Good morning. Good to see you. So that was the big press conference
:03:03. > :03:06.that happened today. Give us more on where they went wrong. While it is
:03:07. > :03:10.good news for Samsung that it wasn't their own design that was the
:03:11. > :03:15.problem it was a problem on their behalf that they didn't do enough
:03:16. > :03:18.testing of the Note 7 and after they caught the problem and switched
:03:19. > :03:24.battery suppliers they asked the new supplier to go too fast too quickly
:03:25. > :03:29.and a whole new set of problems occurred with this new supplier. So
:03:30. > :03:32.there are a lot of lessons to be learned for other manufacturers as
:03:33. > :03:38.well as we try to shrink phones and pressure the batteries about how to
:03:39. > :03:42.design and test those issues. It was almost like the race was on to get
:03:43. > :03:47.this phone out there at the same time as the apple iPhone 7 and also
:03:48. > :03:51.Google launching its phone as well, there is so much competition right
:03:52. > :03:55.now that perhaps there I was off some of the detail. Exactly, and
:03:56. > :03:59.especially the last two or three months of the year are so important
:04:00. > :04:04.for any consumer device sales obviously with black Monday in the
:04:05. > :04:08.US leading into Christmas and most of the western world leading into
:04:09. > :04:12.the Chinese New Year at this time of year. So, what now, they have set as
:04:13. > :04:17.well today that they are not going to be launching their next news
:04:18. > :04:21.Samsung smartphone in February at the big mobile phone conference in
:04:22. > :04:27.Spain, which was expected. So, what now? Yes, the Galaxy S8, which we
:04:28. > :04:34.expected at the end of February we won't see until April, which gives a
:04:35. > :04:38.big window of opportunity for Sony, HTC, Huawei, launching flagship
:04:39. > :04:42.phones in the next month or two to make an impact on the market. For
:04:43. > :04:45.Samsung it was them in a difficult position because they are in a
:04:46. > :04:51.non-traditional launch window but I guarantee they will come to the
:04:52. > :04:55.market with the S8 and not only will it be very well-prepared and tested
:04:56. > :04:59.but they will come with millions of marketing to try to overcome the
:05:00. > :05:03.brand damage. How damaging has it been, how put off are we when it
:05:04. > :05:10.comes to buying a Samsung, are we keeping Samsung for the time being,
:05:11. > :05:18.our people staying loyal? I think with most controversies with mobile
:05:19. > :05:24.phones, it stuck in people's mind, it was a protracted recalled, that
:05:25. > :05:27.really pushed it into the public consciousness, the butt of
:05:28. > :05:31.late-night jokes on American TV networks, it was all over social
:05:32. > :05:35.media, so I think because of that it is a kind of issue that will stick
:05:36. > :05:40.with consumers for several months and will impact on a lot of
:05:41. > :05:44.decision-making. Ultimately I think Samsung can recover if they invest
:05:45. > :05:48.heavily enough into their market. And if nothing goes wrong again in
:05:49. > :05:52.future, you would imagine. Thank you for your time this morning. And
:05:53. > :05:56.there is much more detail on the story on the website, as with this
:05:57. > :05:57.story too, which we will discuss next.
:05:58. > :05:59.Foxconn, one Apple's biggest suppliers based in Taiwan,
:06:00. > :06:01.has confirmed it's considering setting up a display-making plant
:06:02. > :06:10.Sharanjit Leyl is in our Asia Business hub in Singapore.
:06:11. > :06:21.Interesting announcement from Foxconn? Indeed it is, and it was
:06:22. > :06:27.from none other than the chief executive Terry Go, part of Taiwan's
:06:28. > :06:33.technology giant Foxconn, basically confirming they are to set up a
:06:34. > :06:40.plant in the US, with Mr Go saying it might exceed $7 billion. It is a
:06:41. > :06:45.major supplier of apple and a likely generate thousands of jobs for the
:06:46. > :06:49.US, if it does indeed go ahead and the plans come after US President
:06:50. > :06:55.Donald Trump confirmed his America first agenda which is meant to
:06:56. > :06:59.overturn international trade treaties, which he said during his
:07:00. > :07:03.inaugural speech on Friday and during his campaign. Since his
:07:04. > :07:09.election he repeatedly threatened high import tariffs in order to try
:07:10. > :07:13.to encourage US as well as foreign companies to improve production in
:07:14. > :07:18.the United States and he singled out China as a significant cause of loss
:07:19. > :07:23.of manufacturing jobs in the United States. As we know, Foxconn doesn't
:07:24. > :07:30.just manufacture for Apple but for other global giants as well. It is
:07:31. > :07:33.formally known as Honhai Position and has most of its factories in
:07:34. > :07:35.China, where it assembles its iPhone. Very interesting. Thank you.
:07:36. > :07:37.See you soon. The UK Prime Minister Theresa May
:07:38. > :07:41.will today launch the government's vision for an industrial
:07:42. > :07:43.strategy for Britain. Our Industry correspondent
:07:44. > :07:44.John Moylan talks us through what the government
:07:45. > :07:52.is likely to announce. How can the government ensure the
:07:53. > :07:57.economy is fit for the future? For the Business Secretary Greg Clark
:07:58. > :08:02.places like this are part of the answer, it is a new automotive
:08:03. > :08:09.innovation centre in Warwick backed by government industry money and
:08:10. > :08:12.designed to keep carmakers firing on all cylinders. One of the things
:08:13. > :08:17.with industrial strategy is to build on the great success and also to
:08:18. > :08:22.help make sure that we drive growth in all parts of the country. The
:08:23. > :08:25.industrial strategy will be committed to driving very hard to
:08:26. > :08:31.spread the opportunities right across the country and to drive not
:08:32. > :08:36.just jobs but really good well-paid jobs in all parts of the country. It
:08:37. > :08:42.is going to be a big part of the strategy. Today the strategy will be
:08:43. > :08:46.outlined in a new green paper aimed at kickstarting wide-ranging
:08:47. > :08:50.consultation on the government's new vision, including plans for sector
:08:51. > :08:53.deals where businesses and stakeholders in specific sectors can
:08:54. > :08:57.make the case for government support. That is just one of ten
:08:58. > :09:02.so-called strategic pillars which are all designed to increase
:09:03. > :09:06.productivity and drive growth. In the past, governments used
:09:07. > :09:10.industrial strategies as an excuse to back key firms or industries. It
:09:11. > :09:17.didn't always work. As we prepare for the challenges of leaving the EU
:09:18. > :09:20.the big test of this plan will be that it doesn't just deliver for
:09:21. > :09:25.successful firms like this but that it reaches out to all parts of the
:09:26. > :09:26.UK to deliver the government's aim of an economy that works for
:09:27. > :09:29.everyone. United Airlines says in a statement
:09:30. > :09:32.it grounded all domestic flights You might have noticed if you try to
:09:33. > :09:39.fly on Sunday. It did not give any more details,
:09:40. > :09:43.and it was not immediately clear how The Chicago-based Airline
:09:44. > :09:47.and United Express operate more than 4,500 flights a day to 339
:09:48. > :10:01.airports across five continents. So, let's hope they have fixed that
:10:02. > :10:05.problem. Looking at market very quickly and we have a stronger yen,
:10:06. > :10:08.the dollar falling in value, affecting Japan, and that is merely
:10:09. > :10:13.because the news out of the new president so far hasn't really been
:10:14. > :10:16.about how to boost growth but more political issues and issues that
:10:17. > :10:21.could cause a must as opposed to host growth and help the world's
:10:22. > :10:24.biggest economy, so disappointment for financial markets so far on the
:10:25. > :10:29.Trump effect for the global economy - that is down for the dollar and up
:10:30. > :10:31.for the yen, which is not helping exporters in Japan. I will see you
:10:32. > :10:34.soon.