Employees walk past a building of Samsung Electronics in Seoul, South Korea, November 8, 2016. Reuters/Kim Hong-Ji

Release of Samsung Galaxy S8 and Galaxy Note 8 may take a hit as the battery-making arm of Samsung, SDI, is under tremendous pressure and taking all the blame after the Galaxy Note 7 disaster. The Samsung SDI affiliate is still dealing with the after effects of the fiasco. Thus, a fallout between Samsung and SDI is imminent.

“It's a matter of our capability ... We thought we had control (over all aspects of manufacturing), but it turned out there were some aspects we weren't able to govern ... We focused on boosting battery capacity, but this could have been disadvantageous to reliability,” an SDI insider told Reuters.

The insider described the Galaxy Note 7 incident “very embarrassing.” If SDI stops producing batteries for Samsung, it would have a serious impact on devices that are lined up for release. It would take time to strike a deal with another manufacturer and this may further push back the release of Samsung Galaxy S8 and Note 8 handsets.

According to Tech Radar, after the recall, SDI is struggling to assure its clients, including Apple, that its batteries are safe.

“We are also asking ourselves whether we should have done it (the Note 7 battery) this way, or whether there could have been other ways,” a source added.

For a company that is trying to broaden its market, a bad reputation is the last thing it wanted. SDI has lost a fifth of its market value since the Galaxy Note 7 issue.

Meanwhile, the Samsung Galaxy S8 handset is said to be a powerhouse of specs and features. Massive increase in speed and storage capacity has been revealed. It could very well become the most powerful handset to be released. Samsung needs to find a battery supplier fast and quick to ensure nothing goes wrong with the launch.

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