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Samsung ceases production of Galaxy Note 7

Posted on Tuesday, October 11 2016 @ 16:21:50 CEST by

Samsung logo
With even the replacement Samsung Galaxy Note 7 devices bursting into flames, it's no surprise that the South Korean conglomerate decided to cease sales (and production) of this flagship phablet. Faulty battery cells were initially blamed as the culprit but with supposedly "safe" phones exhibiting the same problem it seems the real problem is still unknown.
Samsung Electronics Co. is ending production of its problematic Galaxy Note 7 smartphones, taking the drastic step of killing off a device that became a major headache for South Korea’s largest company.

Samsung had already recalled the Note 7 once last month after early models exploded and the latest move comes after customers reported that replacement phones were also catching fire. Samsung will be without its highest-end smartphone that was supposed to compete against Apple Inc.’s iPhones and other premium devices during the holiday shopping season.
Previously, analysts estimated the debacle would cost Samsung $1 billion to $2 billion but that figure will now become much higher. Bloomberg cites Chung Chang Won, an analyst at Nomura Holdings Inc, who predicts the Note 7 disaster may cost Samsung $5 billion in operating profit through 2017.

If you own a Galaxy Note 7, you're advised to turn the device off and contact the seller. Here's the full statement from Samsung:
We are working with relevant regulatory bodies to investigate the recently reported cases involving the Galaxy Note7. Because consumers’ safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note7 while the investigation is taking place.

We remain committed to working diligently with appropriate regulatory authorities to take all necessary steps to resolve the situation. Consumers with either an original Galaxy Note7 or replacement Galaxy Note7 device should power down and stop using the device and take advantage of the remedies available.



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