Samsung Halts Production of Galaxy Note 7 smartphone after Batteries Explode


Samsung has confirmed that it is permanently stopping production of the Galaxy Note 7 smartphone after it was involved in dozens of fires and explosions worldwide.

In a regulatory filing in Korea late on Tuesday, the firm said it had made the decision to stop production for the sake of consumer safety, according to the Associated Press.

The report comes the day after Samsung said it was “adjusting production”, an admission that many saw as the first steps towards killing the phone entirely.

In discontinuing the phone, Samsung follows the advice of many analysts who saw it as a lost cause, and who argued that the company’s priority should be protecting the rest of its brand.

“This has probably killed the Note 7 brand name,” Edward Snyder, the managing director of Charter Equity Research, told Business Insider. “By the time they fix the problem they have to go through recertification and requalification and by the time that happens they’re going up against the Galaxy S8 launch.”

Even so, the company will struggle to keep premium customers from switching to other manufacturers such as Google, which released its own Pixel XL phone this month as a direct competitor to the Note 7. Edison Investment Research said: “As a result of making a complete mess of the Galaxy Note 7 recall, Samsung is more likely to lose a large number of high end users to other Android handsets rather than to Apple.”

Richard Windsor, an analyst with Edison, added: “As long as Samsung carried out the recall smoothly and kept users very happy, the issue would eventually blow over. Unfortunately, this is very far from the case and the fact that Samsung appeared to still be shipping defective devices could trigger a large loss of faith in Samsung products. It also ensures that when there are problems with its other products they will be brought into laser focus by the media. The net result is that Galaxy Note 7 owners are now likely to end up with devices from other manufacturers.”

Source: The Guardian