Samsung to stop making Note 7 phones
SAMSUNG yesterday suspended all production of its Galaxy Note 7 smartphone, halted sales worldwide and told customers to stop using the device, following reports that replacements for combustible models were also catching fire.
The South Korean company's latest efforts to contain a snowballing recall crisis that threatens to derail the powerhouse global brand came as the federal US consumer regulator issued an alarming warning of the possible dangers the Note 7 posed to owners, their families and homes.
The news slammed Samsung's share price, which closed down 8 per cent, following a 1.5 per cent drop the day before.
The measures announced by the world's largest smartphone maker came a little over a month after it recalled 2.5 million Note 7s in 10 markets.
"If it's once, it could be taken as a mistake. But for Samsung, the same thing happened twice with the same model so there's going to be a considerable loss of consumer faith," said Greg Roh at HMC Investment Securities.
A day after it said it was "adjusting" the manufacturing volume of Note 7s, Samsung said yesterday it was "putting consumer safety as the top priority" and halting production completely.
Earlier in the day, it had directed all its carrier and retail partners worldwide to stop sales and exchanges of the Note 7 pending a thorough investigation.