Image copyright Reuters Image caption The Galaxy Note 7 had been well-reviewed but dozens of the phones overheated 
 
 Samsung's probe into its Galaxy Note 7 fiasco has found that the overheating and burning of the phones was caused by faults with their batteries. 
 
 The firm had axed its iPhone rival in October last year after an earlier botched recall and re-release. 
 
 The recall is thought to have cost $5.3bn (£4.3bn) and was hugely damaging for the South Korean firm's reputation. 
 
 On Monday, Samsung said that neither software nor hardware were at fault, only the batteries. 
 
 Internal and independent investigations "concluded that batteries were found to be the cause of the Note 7 incidents", the South Korean technology giant said in a statement. 
 
 So what went wrong? 
 
 The company said that errors both in design and manufacturing affected batteries by two different manufacturers. 
 
 According to the findings, the problems centred on insufficient insulation material within the batteries and a design that did not give enough room to safely accommodate the batteries' electrodes. 
 
 Image copyright Samsung Image caption Some batteries were affected by a design error ... 
 
 Image copyright Samsung Image caption while others suffered from insulation problems 
 
 Samsung said it was "taking responsibility for our failure to ultimately identify and verify the issues arising out of the battery design and manufacturing process". 
 
 The smartphone giant did not name the battery suppliers during their Monday presentation, though last year had identified them as their affiliate Samsung SDI and Chinese company Amperex Technology. 
 
 Samsung said it did not plan to take legal action and that it accepted responsibility for asking the suppliers to meet certain specifications. 
 
 "Samsung has done what they needed to do for now but the true test will need to happen over time," analyst Bryan Ma of IDC told the BBC. 
 
 "If successive products can be delivered consistently without incident in the next year or so, then they will be in a better position to regain consumers' trust." 
 
 Image copyright AFP Image caption Some reviews had described the Note 7 as being the best Android handset to date 
 
 Launched in August 2016, Samsung's Note 7 device was marketed as a large-screen top-end device and positioned as a rival to Apple's iPhone. 
 
 But in September, Samsung had to recall about 2.5 million phones after complaints of overheating and exploding batteries. 
 
 The firm insisted that all replaced devices were safe. However, that was followed by reports that those phones were also overheating. 
 
 Lessons to learn 
 
 The company said there would be no repeat of the fires in future devices such as the upcoming S8. 
 
 "We look forward to moving ahead with a renewed commitment to safety. The lessons of the past several months are now deeply reflected in our processes and in our culture." 
 
 The firm also said it would not unveil its upcoming Galaxy S8 phone at the Mobile World Congress in Barcelona, as had been expected, suggesting the flagship model's launch may be later in the year. 
 
 The head of the firm's smartphone business, Koh Dong-jin said the phone would not get a launch event at the event in Barcelona in February unlike previous Galaxy S smartphones. 
 
 Samsung Note 7 - how events unfolded 
 
 24 August: The first report of a Note 7 "exploding" appears in the news, soon followed by images of more smouldering Samsungs. 
 
 2 September: Samsung announces a voluntary global recall of 2.5 million Note 7 phones, citing faulty batteries. It offers refund or replacement. 
 
 8 September: US aviation authorities and many airlines tell passengers not to turn on or charge the phone on planes. 
 
 9 September: The US Consumer Product Safety Commission tells people to stop using the phone and on 15 September issues a formal recall. 
 
 5 October: Reports emerge of a replacement Note 7 overheating on a US flight. In the following days more reports appear and major US carriers stop selling the device or issuing replacements. 
 
 11 October: Samsung permanently stops production of the Note 7. It tells people to turn them off and stop using them. ||||| SEOUL (Reuters) - The recovery in Samsung Electronics Co Ltd’s (005930.KS) mobile business suffered a blow on Thursday as reports of exploding batteries forced the firm to delay shipments of Galaxy Note 7 smartphones, and knocked $7 billion off its market value. 
 
 A model demonstrates iris recognition function of Galaxy Note 7 new smartphone during its launching ceremony in Seoul, South Korea, August 11, 2016. REUTERS/Kim Hong-Ji/File Photo 
 
 Investors drove the stock to two-week lows after the global smartphone leader told Reuters late on Wednesday the shipments had been delayed for quality control testing, and that shipments to South Korea’s top three mobile carriers had been halted. 
 
 Faults with the new premium flagship device could deal a major blow to the South Korean giant, which was counting on the Galaxy Note 7 to maintain its strong mobile earnings momentum against Apple Inc’s (AAPL.O) new iPhones expected to be unveiled next week. 
 
 “This is some major buzz-kill for Samsung, especially given all of the hard-earned excitement that products like the Note 7 have been garnering lately,” IDC analyst Bryan Ma said. 
 
 “The pending Apple launch puts all the more pressure for them to contain this quickly. The timing of this couldn’t have been worse.” 
 
 Samsung did not comment on what problem it was trying to address or whether other markets were affected besides South Korea. 
 
 Sister company Samsung SDI Co Ltd (006400.KS) said that while it was a supplier of Galaxy Note 7 batteries, it had received no information to suggest the batteries were faulty. 
 
 Several people posted images and videos of charred Galaxy Note 7s online and said their phones had caught on fire. 
 
 “Be careful out there, everyone rocking the new Note 7, might catch fire y’all,” one user said in a YouTube clip showing a burnt Note phone. It was not immediately possible to confirm the veracity of the clip. 
 
 Related Coverage Samsung Electronics shares open down as firm flags Galaxy Note problem 
 
 Samsung's shares, which hit a record high of 1.694 million won last week, fell 2 percent, and Samsung SDI tumbled 6.1 percent, versus a 0.1 percent fall for the broader market .KS11. 
 
 Several South Korean media reports, without citing direct sources, said Samsung will soon announce a plan to recall affected Note 7 phones and replace their batteries as opposed to giving the users a new device. A Samsung spokesman declined to comment on the reports. 
 
 DAMAGE CONTROL 
 
 Last year, production problems for the curved displays for the Galaxy S6 edge model resulted in disappointing sales, and Samsung risks a repeat this year if it cannot address the Galaxy Note 7 problems quickly. 
 
 Its mobile profit is on track to post annual growth for the first time in three years, thanks to robust sales of the Galaxy S7 and S7 edge devices that it launched in March to critical acclaim. 
 
 The Galaxy Note 7 received similar praise, raising expectations for strong sales in the second half. Samsung said in August demand for the new handset, priced at 988,900 won ($882) in South Korea, was far exceeding supply, pushing the firm to delay the launch in some markets. 
 
 HDC Asset Management fund manager Park Jung-hoon said it now appeared inevitable that Samsung’s smartphone average selling price and profits would miss lofty second-half expectations. 
 
 “Apple is supposed to show off the iPhone 7 next week and this issue has emerged, so the current state of things do not look good,” he said. 
 
 Though a components pick-up will buttress overall profits, Park said mobile operating profit might decline by up to 200 billion won for July-September. 
 
 Slideshow (2 Images) 
 
 The mobile division accounted for about 54 percent of Samsung Electronics’ January-June operating profit of 14.8 trillion won. 
 
 Hyundai Securities said in a report that the Galaxy Note 7’s problems should be resolved within a “few weeks”. 
 
 The brokerage retained its third-quarter operating profit forecast of 8.5 trillion won.
– Disaster for Samsung: The company is recalling its hot (and occasionally explosive) new phone worldwide because of a battery problem that can cause it to catch fire when charging, CNNMoney reports. Sales of the Galaxy Note7 have been halted. Samsung says it's aware of at least 35 cases of faulty batteries and will replace all 2.5 million Galaxy Note7 phones that have been sold. TechCrunch notes that the timing is very painful for Samsung, since Apple is releasing its latest iPhone next week. "We are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market. However, because our customers' safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note7," Samsung said in a statement. "For customers who already have Galaxy Note7 devices, we will voluntarily replace their current device with a new one over the coming weeks." (After its release less than a month ago, reviewers called the device "the most impressive smartphone ever created.")