Samsung Electronics Co. will now permanently discontinue Galaxy Note 7 smartphone production, pulling the plug on a product whose botched recall has brought headaches to consumers and damaged the Samsung brand. “Taking our customer’s safety as our highest priority, we have decided to halt sales and production of the Galaxy Note 7,” said Samsung in a statement.
This is the second time a prominent brand will have the production of its brand discontinued in recent times. Earlier, Blackberry said it will no longer produce its own devices but unlike Samsung issues which are due to the battery explosion, theirs is due to poor sales. The iPhone 7 had a similar problem, but it seems not to pose any critical challenge, just yet.
The filings to discontinue Galaxy Note 7 production and sales of the device made were with South Korean regulators. Samsung started selling the Note 7 in South Korea on Aug. 19 but announced a global recall of 2.5 million units earlier last month following reports of some of the devices catching fire while being charged.
An updated statement to the one from earlier where the company confirmed it had halted production, Samsung said:
“We are working with the US Consumer Product Safety Commission (CPSC) to investigate the recently reported cases involving the Galaxy Note7. Because consumers’ safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note7 while the investigation is taking place.
We remain committed to working diligently with the CPSC, carriers, and our retail partners to take all necessary steps to resolve the situation. Consumers with an original Galaxy Note7 or replacement Galaxy Note7 should power down and take advantage of the remedies available, including a refund at their place of purchase. For more information, consumers should visit samsung.com/us/note7recall or contact 1-844-365-6197.”
The company is recommending that ALL Galaxy Note 7 users should power down and return their phone, which simply means the Galaxy Note 7 is dead. Carriers have issued statements letting customers know that replacement Note 7s can be exchanged for another handset from Samsung or other manufacturers.
One global recall was unprecedented but with trouble also flaring for the replacement units, a second global recall is now in short order. The result = one of the best phones of the year (with one critical flaw) is no more. Goodbye Galaxy Note 7 (and possibly the entire Galaxy Note range), it’s been a blast.
Samsung is certainly not out of the mobile business despite this disaster, but recovery will be slow. The company’s shares tumbled 8 percent yesterday, its biggest one-day decline in nearly a decade, with analysts estimating the recall could end up costing as much as $17 billion. What a great loss for Samsung, but I expect to see a better phone from them next time, what about you?