Samsung Australia confirmed the probe on Wednesday after receiving reports its software had rendered some smartphones unusable shortly after installation.
The devices reportedly stopped working, only showing the Samsung logo.
But a spokesperson confirmed the issue appeared to be confined to South Australia, with all reports coming from the state in the past two days.
The issue has not been reported anywhere else in the world.
"Samsung has received reports from customers of an issue when updating their phones," the company said in a statement.
"At this time, these reports are from customers based in South Australia only. We are continuing to investigate this matter."
Samsung Australia has yet to comment on what particular smartphones are affected by the software issue or how many customers have reported the fault.
The company is recommending users contact a local service centre to address the issue, although devices hit by the problem may need to be reset, wiping all information from the phones, including photos, messages and contacts.
If confirmed, the issue could affect thousands of Australian smartphone users.
Almost one in three smartphones sold in Australia between July and September 2022 were Samsung models, according to Kantar Worldpanel research.
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