It's confirmed: Samsung permanently discontinues the Galaxy Note 7
It's official. South Korean tech giant Samsung has permanently ceased production of its flagship Galaxy Note 7 smartphones after reports of devices catching fire.
Samsung confirmed the official discontinuation of the Galaxy Note 7 line by releasing a statement on Tuesday, 11 October
"For the benefit of consumers' safety, we stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production," Samsung's statement said.
The Note 7 disaster has left Samsung bruised and battered. Losses are estimated to be around USD17 billion.
According to tech site Android Authority, the company is facing a massive USD17 billion dollars in lost sales revenue.
Shares in Samsung Electronics have dipped as well. It closed down at 8% - its biggest daily percentage drop since 2008 - with almost USD20 billion wiped off the company's value Tuesday.
10 OCTOBER: Samsung has temporarily halted production of its trouble Galaxy Note 7 smartphone, according to sources close to the Korean tech giant
The reports come from the New York Times and Korean news agency Yonhap. Both companies confirmed that they've received news that Samsung is finally putting a stop to the production of the Galaxy Note 7.
The decision doesn't come off as a surprise considering how the company has struggled to handle the ongoing recalls of the smartphone
Samsung has replaced the first batches of Galaxy Note 7s that were prone to catching fire and exploded. Little did they know, the replacements were also susceptible to exploding.
In the past week, at least four reports surfaced from Galaxy Note 7 owners in the US claiming that their replacements devices suddenly caught fire.
According to Yonhap, the halt in production is said to be in cooperation with safety regulators in the US, China, and Korea
"This measure includes a Samsung plant in Vietnam that is responsible for global shipments (of the Galaxy Note 7)," an official at a supplier for Samsung was quoted as saying to Yonhap.
T Mobile and AT&T - two major carriers in the US - have now suspended sales of the product, and the exchange program has also been halted. Instead, the carriers encourage customers to opt for smartphones from other brands.
Samsung hasn't responded to the reports but this has slowly becoming a disaster that the company hopes to forget in due time