It is official! Samsung halted production of the crisis-ridden Galaxy Note 7, pulling the plug on a smartphone plagued with problems since launching two months ago.
In a statement cited by a number of publications, the company said it had stopped production of the phone, considered key to competing with Apple’s latest iPhone 7 and Google Pixel, among other devices recently launched, ahead of the holiday season.
The move follows an earlier statement released by the company telling consumers to stop using the smartphone, while requesting its global partners issue a halt on sales and exchanges globally, as it began an investigation into safety issues.
“Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note 7 while the investigation is taking place,” it said earlier.
Following a global recall of some 2.5 million Galaxy Note 7 last month over exploding battery issues, the company began to exchange and replace the device two weeks ago.
As it tried to move on from the issue, it was hit with new setbacks last week after reports emerged that the replacement devices were experiencing the same issues, the most high profile being a replacement Note 7 device catching fire on a US airliner.
As further similar reports emerged, it was suggested that Samsung hadn’t fixed the original issue, with the finger pointed at the device’s battery technology.
It is unclear at this stage what the long-term impact will be for Samsung, following its reported decision to end production.
The original recall was expected to cost the company as much as $2 billion, and today’s latest developments have seen $17 billion wiped from market value – not to mention the impact it is having on its reputation in the highly competitive smartphone market.