On Tuesday, Samsung announced that it is going to permanently discontinue the production and the sale of the Galaxy Note 7. The Samsung smartphone had gone through numerous problems and recalls. In the end, Samsung advised Galaxy Note 7 buyers to stop using the smartphone altogether.
Samsung reached the decision to pull the plug on one of its premium products with difficulty. But the product recall had been problematic. The problems that the Galaxy Note 7 was going though were starting to affect the entire Samsung brand.
Samsung Gives Up on Galaxy Note 7 and Stock Goes Down
In a filing with regulators in South Korea, Samsung said that it was going to permanently cease production as well as sales of the electronic device.
“Taking our customer’s safety as our highest priority, we have decided to halt sales and production of the Galaxy Note 7.”
Samsung said in a statement.
Samsung was forced to reach this decision after there were problems even with the replacement Galaxy Note 7. The replacements were supposed to be safe and problem-free. But there were reported incidents where the smartphones overheated. In some instances, they even caught fire.
It’s been over a month since Samsung launched the initial recall of the Samsung Galaxy Note 7. Investors are now looking at the possibility of Samsung completely discontinuing the Galaxy Note series altogether.
It was a bad day on the stock market for Samsung. Shares dropped 8 percent, the biggest decline in a single day that the South Korean company has seen in eight years. After Samsung made a public announcement urging Galaxy Note 7 users to switch off their smartphones immediately, the South Korean market went down by 1.2 percent. But the hit that Samsung took on the market was significantly more important.
Samsung Galaxy Note 7 Users Asked to Switch Off Their Devices
Earlier the company had wanted to start an investigation into the most recent incidents regarding the Samsung Galaxy Note 7. So they asked telecom carriers and other retailers to stop sales of the smartphone. They also asked for exchanges of the device to stop, pending investigation. Telecom carriers in the United States had made the decision to do that on their own.
Consumers that have a Galaxy Note 7, even a replacement one, should stop using the device and switch it off, recommended Samsung.
The recent developments this Tuesday were the latest in a series of events that saw Samsung fumble its strategy. Initially, the company tried a global recall of the Samsung Galaxy Note 7. The recall was for 2.5 million smartphones. But there were so many missteps that confusion grew among consumers. Airlines and telecom operators also become involved. The level of trust that telecom carriers had in Samsung went down.
Meanwhile, the situation is even more difficult for Samsung in China. The country is a big market for the sale of smartphones for Samsung. But it has had terrible luck there recently. At first, Samsung contested the reports from China that said Galaxy Note 7 phones had exploded. Regardless of the lack of reaction from the South Korean company, regulators in China launched a recall of the smartphone.
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