Samsung Electronics Galaxy Note 7 problem was caused by its irregularly sized batteries. The device has been recalled when numerous complaints about overheating and exploding batteries surfaced the internet. This was recently revealed in a probe that stated the batteries did not fit properly in the phone.

It's just been revealed that Samsung SDI did not fit properly inside the Galaxy Note 7 phones, causing overheating and explosion. Samsung then sought to issue replacement phones, which encountered manufacturing problems because Samsung wanted to speed up release and distribution, CNBC reported. Samsung is set to issue a statement to reveal the real cause of the problem based on own investigation.

Samsung Galaxy Note 7 problems started only days after its release. The device was supposed to be the competition for Apple iPhone 7 but 2.5 million handsets were recalled in 10 markets when the scandal became viral. A recall to replace the batteries with other faulty ones did not work prompting the company to stop the production of the entire line, Reuters reported.

Because of that, Samsung is expected to announce over $5 billion loss for 2016 until March 2017. With its reputation severely damaged, the company seeks to bounce back with the Galaxy 8 that's expected to roll out in April or May this year. Their ability will be measured based on how well the new model sells to the public.

Song Myung-sup, an analyst from Hi Investment, says once Samsung releases its findings and finds out what caused the fires consumers will not hesitate to buy the S8. According to another analyst from HMC Investment Securities, Greg Roh, the biggest mistake that Samsung did was to issue a second recall. That's because the giant tech company will have a hard time convincing investors that the matter is resolved when the cause of the first problem is the same as the second one.

Despite a tarnished reputation, Samsung's share price was at a record high because of the booming chip sales.