Samsung Halts Sales Of Galaxy Note 7 – Shocking Video
Samsung Electronics halted sales of its Galaxy Note 7 smartphones yesterday and told owners to stop using them.
The company said in a statement in Seoul that it was investigating reports of fires from the phone by consumers.
”Consumers with either an original Galaxy Note 7 or replacement Galaxy Note 7 device should power down and stop using the device,” the company said.
Samsung is now considering permanently halting sales of its flagship smartphones as an option, a source familiar with the matter said.
Fresh reports of fires in replacement devices prompted new warnings from regulators, phone carriers and airlines.
However, Samsung spokeswoman said nothing had been decided about future sales plans.
The world’s top smartphone maker said it asked all global carriers to stop sale of the Note 7s and the exchange of original devices for replacements.
The company is offering to exchange Note 7s for other products or refund them.
Samsung’s decision to pull Note 7s off the shelves for the second time in less than two months could result in a huge loss of finance and reputation.
Analysts said a permanent end to Note 7 sales could cost Samsung up to $17 billion and tarnish its other phone products in the minds of consumers and carriers.
Investors wiped $18.8 billion off Samsung Electronics’ market value on yesterday as its shares closed down eight per cent – their biggest daily percentage decline since 2008.
The premium device, launched in August, was supposed to compete with Apple’s latest iPhone for supremacy in the smartphone market.
However, within days of the launch, images of charred Note 7s began appearing on social media, in the first sign that something was wrong with the gadget.
Samsung has since recalled 2.5 million Note 7s due to faulty batteries.
”This has probably killed the Note 7 brand name – who knows if they will even be allowed to re-release it,” Mr Edward Snyder, managing director of Charter Equity Research said.
”By the time they fix the problem, they have to go through recertification and requalification, and by the time that happens, they are going up against the (Galaxy) S8 launch.”